$Digital World Acquisition Corp(DWAC)$ With former US President Donald Trump determined to launch new social media platforms, and planning to merge with SPAC company Digital World Acquisition Corp, the latter share price has skyrocketed.
Recent reports suggest that TRUTH Social, owned by Trump Media & Technology Group, plans to launch on Feb. 21. That sent DWAC's share up another notch, and it looks to be a continuation of that move.
TRUTH Social is expected to be very popular among Trump supporters, many of whom believe they are being censored on more mainstream social networks like Twitter.
Many on Wall Street see Truth Social as being critical if Trump runs for reelection in 2024. Although he has not confirmed his intent to run, many believe the former president is the frontrunner to become the Republican Party nominee in the next presidential campaign.
While DWAC stock is marching higher, the shares are not likely to really take off and hold their gains until the Truth Social app officially launches and the SPAC deal that will see Trump Media begin trading on a stock exchange occurs. Until then, the SPAC stock is likely to continue moving erratically.
A Trump-backed social media platform is definitely capable of building a big following, but the stock seems like it has run up way too quickly.
The market cap has now reached $2.35 billion, the platform has not yet launched, and there are still pending regulatory issues, so I would be wary of the stock right now. There are plenty of uncertainties, and there could be plenty of volatility ahead.
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