Yesterday something obscure that goes under the stock symbol DWAC had a bit of a jump. Here’s its five day price chart:
What’s going on?
Trading in Trump-linked SPAC Digital World Acquisition Corp. (DWAC) was halted after shares soared following the announcement of former President Trump’s new social media network, Truth Social.
Digital World Acquisition’s stock was the most actively traded stock on Fidelity, as well as the consolidated tape of the New York Stock Exchange and Nasdaq listings, CNBC reported.
The company’s stock skyrocketed more than 130 percent before trading was halted for a second time on Thursday, the outlet reported. At one point, the stock surged by up to 160 percent.
More than 260 million shares of DWAC had been traded by midday.
Trump announced the launch of Truth Social on Wednesday night, saying it would “stand up to the tyranny of Big Tech.” [The Hill]
Big words. From a big liar. And for that reason I don’t plan to put a penny anywhere near this stock. I probably won’t even pay attention to it. Why? In a phrase, a history of failure. As tempting as big moves can be for investors, both shorts and longs, the fact is that failure and lying make it damn near impossible to predict what is hiding behind any statement issued by Trump and his proxies.
In fact, anyone with enough leverage could be manipulating its price in an attempt to get the fraud-based profit making rolling.
So this statement …
The planned merger values TMTG at an initial $875 million, with the potential of $825 million in additional earnout for a cumulative valuation of $1.7 billion, the press release said.
… sounds like simple madness to me.
