By The rise of Donald Trump as a prominent figure in the Republican party has had a significant effect on Digital World Acquisition Corp., the company responsible for taking Trump’s media company public. As a result, the company’s stock, DWAC, has experienced a historic surge.
Leading up to the New Hampshire primary, which took place on Tuesday, DWAC saw its stock increase by 4.9% during volatile trading. This represents the highest close for the stock since April 2022. The trading volume for DWAC also skyrocketed, reaching 22.7 million shares. This is a substantial jump compared to the average trading volume of around 2.4 million shares over the past 30 days, as reported by FactSet data.
During Tuesday’s trading session, the stock experienced fluctuations, hitting its lowest point at $40.13, a decrease of 19.2%, before rebounding to reach its highest point of $58.72, an increase of 18.2%. These fluctuations ultimately led to the stock paring some of its gains.
Incredibly, the stock has now surged by a staggering 208.2% over the course of a seven-day win streak. This streak marks the longest winning streak for DWAC since it began trading back in September 2021.
Trump Media’s Stock Soars as Merger with Digital World Progresses
The stock of Trump Media, currently in the midst of a merger with Digital World, has experienced an impressive winning streak over the past few months. Notably, on January 16th, following Trump’s victory in Iowa, the stock saw a remarkable 29% surge on a volume of 8.1 million shares. Similarly, on Monday, the stock skyrocketed by an astounding 88.4% with a trading volume of 29.7 million shares, after Ron DeSantis dropped out of the primary race.
Initially announced in October 2021, the merger between Digital World and Trump Media is set to be finalized in the first quarter of 2024, according to a regulatory filing by Digital World last month. This so-called reverse merger will take Trump Media public. However, progress has been hindered due to delays caused in part by fraud charges against Digital World, which have now been settled, as well as the need for the SPAC (Special Purpose Acquisition Company) to restate its financials.
Looking ahead, the upcoming primaries in Nevada and South Carolina in February will play a pivotal role in shaping the future of Digital World’s stock. However, should Trump secure a win in New Hampshire, a state in which many believe Nikki Haley has a strong chance of winning, these upcoming primaries may not have the same impact on Digital World’s stock, as Trump would essentially guarantee his nomination.
Since its inception, Digital World’s stock has soared by an impressive 251.4% over the past three months, surpassing the S&P 500 index’s gain of 15.2%. Clearly, the potential market impact of a Trump presidency is already being considered by Wall Street.
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