Friday morning takeoff. SPACtober is clearly back, with Digital World Acquisition Corp making waves in the investing world this morning. The SPAC is taking former President, Donald Trump's, planned social media platform public. This blog is NOT about the politics, but the crazy spike in the stock price.
It what might be the next big "meme-stock" or massive hit, the ticker was one of the top trending stocks talked about on Twitter and Reddit’s WallStreetBets. The chatter around $DWAC indicated that it would have a similar trend of massive jumps like AMC and GameStop. Not wanting to repeat history and be on the sloppy end of halted trades, the trading platform Robinhood informed users that they will not be halting the stock (for now).
According to CNBC, the stock skyrocketed 216% at one point and last traded up 117%. The stock surged more than 350% to close Thursday at $35.54 in explosive trading volume and volatility. The advertising software startup, Phunware, which was previously involved with Trump's reelection campaign, jumped in unison with Digital World Acquisition Corp. Their stock has since shot up as well, brining it's week-to-date rally around a 1,700% increase.
Without a product or service just yet, the hype has been real amongst investors. According to Fidelity, DWAC the single most actively traded stock on their brokerage platform. The new company, the yet-to-be-launched Trump Media & Technology Group, said its “mission is to create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.” While DWAC rises, other social media platforms are experiencing decreases across the board.
Twitter ($TWTR), down 3.07% - $63.40
Facebook ($FB), down 5.04% - $324.66
Google ($GOOGL), down 2.72% - $2,776.42
Photo: Google Finance
I am not a financial advisor and this blog is not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. Invest responsibly with you your research.