The stock of a Trump-linked social media company has risen yet again.
An investor frenzy reflected the former president’s staying power, as well as a stock market increasingly prone to casino-like tendencies, as a new investment vehicle linked to Donald Trump’s fledgling media company jumped again Friday.
For the second day in a row, shares of Digital World Acquisition Corp, which is due to merge with Trump’s Media & Technology Group (TMTG) startup, rose, forcing a temporary trading halt.
At 1740 GMT, the stock was trading at $103.42, up 127 percent from the price on Wednesday afternoon before the collaboration was disclosed.
“In effect, it’s a piling. Everyone is simply hoping that the next individual who comes will be willing to pay a higher price “According to Patrick O’Hare of Briefing.com,
While Trump is still popular with a sizable portion of the American public, commentators believe he will find difficulties in creating the “media powerhouse” envisioned in a TMTG presentation, which includes ambitions for social media and streaming services.
Digital World, which trades on Nasdaq under the symbol “DWAC,” is a special purpose acquisition company (SPAC), also known as a “blank check” business because it was formed only for the purpose of acquiring another company.
In September, the enterprises raised $293 million in an initial public offering.
SPACs have grown in popularity in recent years due to low interest rates, as investors seek larger returns, and they provide a quick way to sell shares publicly. WeWork, an office-sharing firm, used this technique to go public on Thursday.
The TMTG and Digital World said in a joint press statement that they expect to deploy “TRUTH Social,” a social media network, across the country early next year.
“As a challenger to the liberal media consortium, the new outlet will fight against Silicon Valley’s ‘Big Tech’ businesses, who have used their unilateral power to muzzle alternative views in America,” according to the press release.
Trump established the national media agenda through his active use of social media sites like Twitter and Facebook, a strategy that pushed him to the president and allowed him to announce plans via tweets.
However, the former president was booted from both platforms after inciting supporters to take over the US Capitol in a violent takeover on January 6 this year while falsely alleging election results were rigged.
Trump’s hotel business suffered as a result of those events, and he lost crucial contracts with the Professional Golf Association and other organizations.
In retaliation for the Trump deal, Saba Capital sold the majority of its Digital World stock. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.