Trump-Linked 'DWAC Is A Meme Stock On Steroids,' Says Herb Greenberg As Former President Set To Get Richer By $3B With Truth Social's Merger
Portfolio Pulse from Rounak Jain
Former President Donald Trump is set to gain $3 billion from the merger of Truth Social with Digital World Acquisition Corp. (NASDAQ:DWAC), making DWAC a 'meme stock on steroids,' according to CNBC's Herb Greenberg. The merger, approved by DWAC's majority shareholders, grants Trump a 58% stake in the new entity. Greenberg criticizes the stock's meme status and political undertones, suggesting only meme stock enthusiasts are investing. Additionally, DWAC's connection to China-based ARC Group, holding a 7.8% stake, is highlighted amidst regulatory challenges and Trump's legal financial needs.
March 23, 2024 | 4:00 am
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Digital World Acquisition Corp. (DWAC) merges with Trump's Truth Social, potentially boosting Trump's wealth by $3B. Criticized as a 'meme stock on steroids' with political undertones and a notable stake by China-based ARC Group.
The merger between DWAC and Truth Social, along with the involvement of high-profile figures and the meme stock label, could drive speculative trading, potentially increasing DWAC's stock price in the short term. However, the political and regulatory scrutiny, along with the meme stock volatility, introduces risks.
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