“Truth Social” Takes a Wild Ride – Trump’s New App Gets Investor Love and a Stock Surge
1. The Deal You’ve Been Hearing About
On Wednesday, Trump Media & Technology Group and the SPAC Digital World Acquisition Corp. announced a merger that will bring Truth Social into the market. The plan includes a beta release next month and a full launch in the first quarter of 2022.
2. Stock Market Gets Crazy – 340% Spike!
- Shares of Digital World jumped 340% to $44.20 in afternoon trading on Nasdaq.
- Market cap ballooned to $1.4 billion from the previous $321 million.
- More than 411 million shares were traded, making it the most active stock on the exchange.
- Investor chatter exploded on Reddit, Twitter, and StockTwits – think rocket emojis and Trump GIFs.
3. Why Investors Are Betting on Trump
- “No publicly traded vehicle for Trump fans”, says Jake Dollarhide, co‑founder of Longbow Asset Management.
- Michael O’Rourke notes that both supporters and critics will flock to the platform to stay in the loop.
- Investors think the platform will draw huge user numbers because of Trump’s charisma.
4. Trump’s Master Plans Post‑White House
Since leaving the Oval Office, the former president has been looking for an unfiltered voice. After Twitter and Facebook blocked his accounts following the January 6 Capitol riot, he’s determined to own his own social media empire.
“Truth Social is my way to fight back against Big Tech,” Trump said in a Wednesday press release.
5. A Quick Look at Big Tech’s Response
- Both Facebook and Twitter suffered small dips: 0.1% and 1.4%, respectively.
- Both platforms had controversially banned Trump because his posts violated their violence‑policy after the Capitol unrest.
6. Bottom Line
The partnership between Trump and a SPAC has sparked a boom in stock value and reflected a broader appetite for a platform exclusively dedicated to Trump’s voice. Whether it will succeed remains to be seen, but right now the market is buzzing.
Uncertain future
Trump Media’s Cash‑Cash Adventure
Picture a giant stash of $293 million sitting in a trust, ready to roll into Trump Media if the current SPAC shareholders play the waiting game. The drama turns on a simple question: Do those shareholders want in on the IPO price of $10 (a cheap bite at a now sky‑high price) or do they prefer to let the money flow straight into the company’s coffers?
The SPAC Roller‑Coaster
- Digital World Acquisition (DWAC), the SPAC spearheaded by former banker Patrick Orlando, has launched at least four special purpose acquisition companies. Two more are on the docket, but none have actually closed a deal yet.
- The shareholders face a choice: redeem their shares at the $10 IPO price or stay merry and let the trust money slide into the firm.
- With the share price spiking lately, the thrill of a deal closing is almost as high as the stocks themselves.
Why It’s Not Nail‑Biting Yet
Although the numbers look good, DWAC’s future is still uncertain because the genius behind it—Orlando—has yet to seal a partnership. His track record is a mixed bag of SPAC launches that never matured into real business deals.
Past Social‑Media Fails
- Parler, a platform chauffeured by Republican donor Rebekah Mercer, faced tech backlash after the January 6 incident. Most companies pulled the plug.
- Gettr, another Trump‑friendly site founded by former adviser Jason Miller, bragged over 1.5 million users in its first 11 days but still struggles to land Trump’s avatar.
Strategic Cloud Questions
Philosophical queries ring out: Can big cloud players allow the platform to function, and just how far can DWAC extend its influence?
