After Twitter and Facebook banned him, former President Trump has finally delivered on his promise to create his own social media website, called Truth Social. The app is scheduled for a beta launch this November, and for public release in early next year, pending no more complications. It does not stop there, though. The Trump Media & Technology Group, the legal entity under which the platform will work, has already come into an agreement to combine with Digital World Acquisition. This deal has been good for the DWAC stock.
Since the news about the merger was announced yesterday, the stock of DWAC has gone up. It has risen over 85% during the first trading hour and shows no signs of letting up. These gains are great for the acquisition firm, whose shares had flatlined at around $10 each for the whole month before the announcement.
The big social media giants in this space like Twitter and Facebook, who Trump’s website was created to fight against, are not off to a great start today, with mixed results in morning trading.
What This All Means
It is not surprising that Trump is creating a new platform. The power of social media for political candidates, but since his removal from Twitter and Facebook, he has been left without an online platform.
Interest in the new business is strong, in part because it has been months since the public has heard new announcements from him. What is unclear is how the current market momentum is driving the stock and how it might continue. Trump’s attempts to create a blog after his ban from social media this year did not go so well. However, Facebook is now embroiled in controversy, so interest in a new alternative platforms is very high.
It is also worth mentioning that SPACs often start strong but then quickly lose their momentum. DWAC stock and Trump’s Truth Social SPAC could be different, as it will get the benefit of routine media coverage as the platform opens up. It is worth watching as the world awaits for this incredible catalyst that could mean profits and political change.
Author: Steven Sinclaire