Why Trump-Linked SPAC Is Shooting Up Premarket Today
Portfolio Pulse from Shanthi Rexaline
Digital World Acquisition Corp. (NASDAQ:DWAC), the SPAC set to merge with Donald Trump’s Truth Social platform, saw gains in premarket trading on Monday. The uptick comes as rival social media platform Twitter faced backlash for limiting unregistered users’ access to tweets, creating an opportunity for Truth Social to attract disgruntled users. However, Digital World faces regulatory scrutiny and challenges in finalizing its merger with Truth Social, with recent insider trading allegations adding to its troubles.
July 03, 2023 | 11:38 am
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Digital World Acquisition Corp. (DWAC) saw premarket gains due to potential user migration from Twitter to Truth Social. However, regulatory scrutiny and insider trading allegations could impact the stock negatively.
The stock price of DWAC rose in premarket trading due to the potential for user migration from Twitter to Truth Social. This could increase the user base and revenue of Truth Social, positively impacting DWAC's stock. However, the ongoing regulatory scrutiny and insider trading allegations against Digital World could negatively impact the stock as they add uncertainty and risk to the merger process.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100