Digital World Acquisition Corp, the SPAC taking Donald Trump’s media company public
In the past week, Digital World Acquisition Corp (NASDAQ:DWAC) soared over 1,600% on plans to take Donald Trump’s media company public, creating a new social media company, TRUTH Social.
But the SPAC is down 62% from its highs. Another stock linked to Donald Trump, Phunware (NASDAQ:PHUN) — which also saw big gains in the same time period — fell 82% from its peak. Here’s the truth about Trump’s app:
- Zero revenue with only a proposed product — and a vague investor presentation with little details. 🚩🚩🚩🚩🚩🚩🚩
- Outlandish market assumptions — taking on Netflix, Disney+, Facebook and other massive digital platforms. 🚩🚩🚩🚩🚩🚩🚩
Ambition is important but so is a background check. According to CNBC, Trump has a history of overpromising on new ventures — which shortly fails (i.e. Trump University, several casinos in the US, Trump Airlines, etc).
Just a meme: And when it comes to meme stocks, only invest what you’re willing to lose.
- It’s not uncommon to see meme stocks double or triple in just days — but those who buy near the top often end up with big losses.
- Can the stock soar again? Maybe. It’s a meme stock after all. And the only thing we know about meme stocks is they’re highly volatile.
Not all meme stocks are the same: Unlike TRUTH social, GameStop had a sound analysis backing it up and is a real business earning real profits. The case made by Keith Gill (a.k.a Roaring Kitty or deepf*****gvalue) that GME was undervalued actually made a lot of sense.
So TRUTH Social turning into another GameStop situation is rather unlikely.