The day has come – Digital World Acquisition Corp (NASDAQ:DWAC) has successfully merged with Trump Media, and investors are over the moon. Sufficiently over, in fact, that they sent shares blasting up over 38% in Monday afternoon’s trading session.
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The effort to combine the two companies—which will, starting tomorrow, trade under the ticker symbol DJT—under one banner has finally proven effective. Trump himself is about to own 80 million shares of the newly aligned company, which will boost his fortunes by several billion dollars. This comes at a good time as he has a campaign to run and various legal actions arrayed against him.
While his ability to access that cash may be in question—a lockup period is likely following the deal’s completion—there are potential workarounds that may free up at least some of those resources for immediate use.
Profitability When?
However, one point that leaves some investors concerned is when exactly Truth Social—the social media network that’s pretty much the flagship product of Digital World right now—will be profitable. One major answer is that “it depends on November.” If former President Trump becomes current President Trump once more—a development looking increasingly likely based on several polls—that would likely light a fire under Truth Social. Without that connection, the impact of Truth Social might prove diminished. It wouldn’t be the first time a SPAC-backed operation didn’t turn around results.
Is DWAC Stock a Good Buy Right Now?
A look at the last five days in trading for Digital World Acquisition Corp stock reveals a fairly volatile picture. However, it’s volatile on an upward trend. Several losses and rallies have been recorded over the last five days, and with today’s news, the cycle of gain and loss has been largely broken, replaced mainly by gain. At least for now.
