Shares of Digital World Acquisition (DWAC), the company set to take former U.S. President Donald Trump's social media platform public, soared to their highest in 19 months after Florida Governor Ron DeSantis ended his 2024 presidential bid and endorsed Trump. The stock jumped 55% to $41, its highest since June 2022. DWAC has more than doubled over the past five trading sessions as Trump gained momentum in his bid to become the Republican candidate. Shares of video-sharing platform Rumble, popular with conservatives, also jumped 33% to $4.77 after announcing a partnership with media firm Barstool Sports. Meanwhile, software developer Phunware, hired by Trump's 2020 presidential campaign, jumped 40% to 36 cents.
However, DWAC remains down over half from levels seen in March 2022 after facing multiple delays since its merger with Trump Media & Technology Group. Despite the stock surge, some experts argue there are no fundamentals driving the increase and compare DWAC to a "memestock" like GameStop. Nevertheless, investors continue to bet on Trump's political fortunes and the success of his social media platform.
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Digital World Acquisition stock surges as Trump's rivals drop out of 2024 race
Shares of Digital World Acquisition Corp., the blank-check firm seeking to merge with Trump Media & Technology Group, have skyrocketed as former President Donald Trump gains political momentum. The stock surged 88% to a 19-month high after Florida Governor Ron DeSantis ended his 2024 presidential campaign and endorsed Trump. Its share price has more than tripled since Trump won the Iowa caucuses on January 15. While there are concerns about the legal, regulatory, and financial aspects of the merger, investors are still flocking to the Trump-linked stock based on the political climate. Some experts liken the stock surge to the "memestock" phenomenon, driven by momentum and speculation rather than fundamental factors. Despite the volatility, investors are closely following the developments surrounding Trump and using the stock as a way to play his political prospects.
