The shareholders of Digital World Acquisition (DWAC) have officially approved the much-anticipated merger with Trump Media & Technology Group, the company behind former President Donald Trump’s tech and social-media platform. After the vote, DWAC shares experienced a decline.
This merger will result in Trump Media & Technology Group becoming a wholly-owned subsidiary of Digital World, with DWAC expected to change its name to Trump Media & Technology Group. Trump’s stake in TMTG is currently valued at over $3 billion based on DWAC’s current stock price.
Despite the initial excitement surrounding the merger, DWAC shares took a hit during Friday’s market action, falling 13.9% to 36.86. The stock had previously seen a surge of 17.8% on Wednesday.
The launch of Truth Social, a conservative social-media platform owned by Trump Media, came after Trump’s Twitter account was suspended in the aftermath of the January 6, 2021, Capitol riot.
The proposed merger between Truth Media and DWAC, announced in October 2021, faced delays due to federal investigations. However, the U.S. Securities and Exchange Commission (SEC) greenlit the merger’s registration statement on February 14, paving the way for the combination to move forward.
The relationship between the value of DWAC stock and the Donald Trump brand is significant. Trump’s current status as a leading Republican presidential candidate has played a role in the stock’s performance. Despite potential challenges posed by federal charges, the Trump brand has remained strong.
As DWAC stock experienced fluctuations in March and fell more than 10% after Friday’s market activity, investors are closely monitoring its performance. The stock is up approximately 130% in 2024 and has seen a significant decline from its peak following news of the Trump merger in October 2021.
With DWAC stock holding a Composite Rating of 41 out of 99 and boasting a perfect Relative Strength Rating of 99, investors are weighing their options in light of recent developments. For more updates on this evolving situation, follow Kit Norton on X (formerly known as Twitter) at @KitNorton.
As the market continues to shift, investors are evaluating opportunities in companies like Tesla, Rivian, and Apple. Stay informed and access valuable insights through IBD Stock Lists and Ratings, Investor’s Corner, and other resources.
Source link
