Trump-linked SPAC stock soars over 460% on social media deal

Buy the Trump- Linked SPAC,” Rekenthaler states the odds are stacked against potential shareholders because private investment in public equity investors received significantly more favorable terms than average investors. In addition, he said that the acquisition target is a shell that brings no assets to the bargain. The Truth Social app is said to be the first of several markets the company will attempt to expand into.

The app appears to be the first project of the Trump Media and Technology Group , which will list on the Nasdaq through a merger with Digital World Acquisition Group. Of course, if this deal doesn’t work out, it wouldn’t be the first time that Trump has left other people — including his supporters — holding the bag. Orlando is involved in a few other SPACs, though he has yet to find a merger partner for any of them. Most recently, he has been trying to merge one with a hydrogen fuel company.

Unfortunately for investors, the firm’s track record is against it. Trump may have co-authored The Art of the Deal, but his company cannot seem to reach one with its SPAC partner. Unless the company pulls off a miracle, DWAC stock will continue its race to the bottom, as InvestorPlace contributor Will Ashworth predicts. There’s no reason to bet on the company, but far too many to bet against it.

Because a target acquisition is not known at the time of their formation, SPACs are known as shell companies or “blank check companies.” SPACs are first created by a team of institutional investors and experienced executives, often coming from the world of private equity. For more perspective, here is a look at the revenue growth rates and price-to-sales ratios of a few of these top growth companies . As you can see above, this is a massive market with massive revenue generation potential . And considering the scope of TMTG , TMTG’s opportunity is huge. People love apps, and it will be quite easy for Big Tech companies like Apple to make up an excuse to kick TRUTH Social out of their app stores.

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This is first time in history a former U.S. president has faced criminal charges. Trump pleaded not guilty to 34 felony counts of falsifying business records at a criminal court in in Manhattan April 4. The eccentric executive has now purchased the company for the originally-agreed $54.20 per share. In an investor presentation the firm estimated it will have 16 million users and 800,000 monetizable users on Truth Social in 2022.

The transaction values what is machinecoin at up to $1.7 billion, Harrington said. The outside investors are usually institutions like banks and pension funds. These investors often add legitimacy — even prestige — by having kicked the tires on the company.

https://cryptolisting.org/ was the most-traded stock on Fidelity’s platform, with well over 30,000 buy orders earlier in the day, outnumbering the sell orders by three-to-one. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Right now, buying DWAC stock is more akin to gambling than investing. The firm has no earnings history to speak of and its stock price been plunging for months. The fact that Elon Musk, one of the world’s most feted entrepreneurs, has now bought Twitter makes the road ahead for Truth Social even more challenging. Unlike other social media companies, TRUTH Social was backed by former president Donald Trump.

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We expect to begin building a position in shares of this stock before the end of this year. Investing is a disciplined, long-term process, and if TMTG successfully shocks the world—there is a feasible path to a $1 trillion market cap within the next decade. For perspective, here is a look at a few of the most valuable social media companies in the world, in terms of ARPU. And on a go forward basis, TMTG believes there remains very strong demand for a Trump-backed social media platform .

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook and Twitter. You can still purchase TMTG by using a decentralized exchange instead. Decentralized exchanges are web applications that run on blockchains like Ethereum and allow users to trade any asset directly with one another. Trump has consistently committed himself to his own site, which is important to the future of his own product given he is a massive social media draw.

DWAC finally released its 10K on April 13, 2022, which reveals that DWAC had a loss of $1.4 million in 2021. Again, at this point, TMTG is essentially just a vision. However, there is a lot of evidence to suggest the market opportunity is there (for a $1 trillion plus valuation), considering the massive TAM and intense pent-up demand. People laughed at Zuckerberg, Bezos, and Tesla’s Elon Musk when their companies were in their infancies, burning cash and essentially generating no profits. And while TMTG’s chairman is no Zuckerberg, Bezos or Musk, he has had a lot of successes too as a businessman, plus a track record of shattering expectations against the odds. This is an absurdly lofty goal, but the opportunity and demand is clearly there for TMTG to succeed.

donald trump

The early version of Truth Social currently in existence appears to be using codebase from decentralized social network Mastodon without giving proper credit. What else should investors know as Wall Street braces for a company controlled by Trump? The release also noted TMTG intends to launch a subscription video-on-demand service which would would feature “non-woke” entertainment programming, news and podcasts. Trump was notoriously banned by major social media giants earlier this year, following his posts related to the January 6 riots at the United States Capitol Building. The app appears to be the first project of the Trump Media and Technology Group , which will list on the Nasdaq through a merger with Digital World Acquisition Group, according to an announcement tweeted out by spokeswoman Liz Harrington.

• Trump’s newly formed company, Trump Media & Technology Group, announced Wednesday evening that it plans to merge with DWAC and take its place on the public markets.
• It was registered in Delaware in February but somehow went unnoticed until Wednesday night.
• In a nutshell, TMTG aspires to create a “rival to the liberal media consortium,” and that includes everything from social media, to news, entertainment and wide-ranging technology .
• Please don’t interpret the order in which products appear on our Site as any endorsement or recommendation from us.
• Trump Media and Technology Group, or TMTG, is a media and technology company founded in February 2021 by former US President, Donald Trump.

But investors should note that this valuation can fluctuate, depending upon the performance of the stock price post-merger. After investors have decided on a chosen investment size and order type, all they have to do is submit the trade by placing the order. If it’s a market order, it will be filled at the best available transaction price immediately. Our Seeking Alpha marketplace service, Big Dividends PLUS, has been launched specifically to serve the needs of high-income investors.

How To Invest In DWAC Stock: 7 Steps

Accessing capital electronically will be another major challenge for TMTG. Some of the fastest and most successful companies today are basically Fintech companies like Stripe, Shopify , GoFundMe, Square ( same CEO as Twitter—Jack Dorsey) and others. And they all have a track record of discriminated against companies with opposing political viewpoints . This will be another massive challenge for TMTG, however a massive long-term opportunity as well. In this article, we review the business model, the market opportunity, the two big challenges that must be overcome, and the stock’s 10-year path to a $1-trillion market capitalization.

They set themselves a deadline by which they aim to find a company to merge with and tell the market which industry they’re targeting — though they can really merge with any willing business. Former PresidentDonald Trumpannounced Wednesday he will be launching his very own media network, including a social media platform called “TRUTH Social,” in order to “stand up to the tyranny of Big Tech.” Should it receive shareholder and regulatory approval, the merger would allow Trump Media & Technology Group to become a publicly traded company. The deal values the business at up to $1.7 billion when including earn-out incentives. You won’t be able to buy Trump Media and Technology Group stocks on UK, Canadian, Australian, or European stock exchange. Instead, you’ll need an international broker that provides access to US exchanges like the NYSE and the NASDAQ.

This month, Trump filed a complaint against Twitter in a district court in Florida alleging that the social media network “coerced by members of the United States Congress,” is censoring him. Additionally, TMTG also plans to launch a subscription video-on-demand service dubbed “TMTG+,” featuring “non-woke” entertainment programming, news, podcasts, and more. But it’s hard to say if they will stick around if a merger gets done. One of the problems with SPACs is that people who help create them are financially incentivized to walk away after the merger.

How to buy Truth Social stock

That can make other investors more comfortable with the SPAC. Gettr and Parler were both founded in the wake of the Trump bans, with older networks like Rumble seeing significant growth too. All three benefit from a new sense among conservatives that moderation on Facebook, Twitter, and YouTube are biased against them.

However, as InvestorPlace reported, this didn’t mean the stock would turn around and start rising. Its performance since then has proven this, with DWAC stock falling 5% for the month. Does this mean that the Trump SPAC deal is on the verge of falling apart for good? Let’s take a look at this development and assess what investors should be expecting. According to a 10K filing, though, DWAC’s day of reckoning is quickly approaching. If the company fails to merge with TMTG by Sept. 8, 2023, it will be the end of the line.

Donald Trump is one of the world’s most famous businessmen, but his companies have usually been privately held. Now investors have the chance to throw their lot in with the former president of the United States through Digital World Acquisition . But Truth Social has a tough task ahead to compete with a Twitter now owned by Tesla CEO Elon Musk. So is DWAC a buy now as Trump faces more legal issues over alleged payments to Stormy Daniels? In contrast, Joseph Nograles from InvestorPlace has a bullish stance on the stock and SPAC merger. In an article, Nograles suggests DWAC is a long-term buy.

TRUTH Social: $1 Trillion In 10 Years Is Feasible

The stock saw more than three-times the buy interest on Thursday than Tesla, the second-most-bought stock on Fidelity, and over six-times the demand for the ProShares Bitcoin Strategy ETF. Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision. Some people like to use their own wallets to guarantee total ownership over their assets, or to use them with other applications like DeFi services. You can follow the same process when you want to sell your tokens, or come back to this page to see if they can now be traded on an exchange in the US. Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years.

Please don’t interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder.com compares a wide range of products, providers and services but we don’t provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Over the next few months, DWAC stock will likely struggle as the company works hard to close the merger.

In theory, that should create a huge potential audience for conservative-friendly alternatives. It was registered in Delaware in February but somehow went unnoticed until Wednesday night. Anyway, Trump has very big ambitions for TMTG, according to the truly ludicrous 22-page investor presentation that was published on its website. TMTG said it will roll out a new social network, dubbed TRUTH Social, which is set to launch in beta for “invited guests” next month and come online nationwide in the first three months of 2022.

Trump Media and Technology Group will be going public after merging with Digital World Acquisition Corp., a special purpose acquisitions company . Shares of DWAC can be bought and sold now like any stock. Here’s how to buy Trump Media and Technology Group stock when the company goes public. The accounts can be opened with a discount brokerage company or a full service broker.

“In most other regards, however, investors in these SPAC combination companies faced essentially the same corporate governance risks as investors in any other recent IPO,” analyst Nilufar Kuchimova said in a research note. According to MSCI, SPACs are able to go public more quickly and inexpensively, and with “far less regulatory or investor scrutiny.” They are also more likely to be managed by a controlling shareholder than conventional IPOs. DWAC stock fell by 70.8% in 2022, dreadful performance by anybody’s standards. The stock is trading back below its 50-day moving average after giving up recent gains. In a June 27 filing, DWAC said the subpoenas, as well as investigations from the Justice Department and the SEC, risk slowing or squashing the merger deal altogether. A federal grand jury in the Southern District of New York is seeking more details on its merger deal with Trump Media & Technology Group.

Full service brokers provide advisory and portfolio management services, but charge higher commissions. For investors who are interested in pursuing a potential investment, the following steps may be helpful. Trading accounts can be opened with a discount brokerage company or a full service broker. Full service brokers provide advisory and portfolio management services but charge higher commissions. TMTG’s financial position is limited to financial data available about Digital World Acquisition, which is providing initial startup capital for TMTG, once their planned merger occurs.