Digital World: Trump's Major Announcement Doesn't Help This Stock
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Update - Jan 25
Truth Social is DOA now.
- Meta Platforms (NASDAQ:META) is reinstating Donald Trump's accounts on Facebook and Instagram after two years of suspensions spurring from the U.S. Capitol attacks on Jan. 6, 2021.
- Digital World Acquisition Corp. (NASDAQ:DWAC), the blank-check company tied to Trump's Truth Social media efforts, has fallen 3% postmarket.
Update Dec. 16Not a good sign to have this many executives and board members fleeing already. The stock has absolutely no reason for still trading this close to $20. -Trump SPAC Digital World Acquisition (NASDAQ:DWAC), which is taking Trump's social media company and Truth Social app public, fell 4% after disclosing the company's chief financial officer resigned last Friday.
-Luiz Philippe Braganza resigned as CFO last Friday, according to an 8-K filing from Thursday. Thee resignation didn't result from any disagreement with the company concerning any matter relating to the company’s operations, policies or practices.
-Digital World (DWAC) also disclosed that board member Lee Jacobson resigned from the board on Nov. 28 and board member Rodrigo Veloso resigned last Friday.
Original article posted on Dec. 16
- Digital World fell as Trump announced a digital trading card on Thursday after market speculation regarding the announcement sent the SPAC higher.
- The SPAC still faces SEC approval risk that would cause a 50% dip to $10.30 and the business model remains nearly non-existent.
- The stock isn't worth the billions assigned to the current price at $20.
While the Digital World Acquisition (NASDAQ:DWAC) shareholders continue to languish in purgatory, Donald Trump is busy releasing digital trading cards, not building Truth Social and Trump Media & Technology Group ("TMTG"). The stock still trades near $20 despite no signs the SPAC deal will close anytime soon due to regulatory issues. My investment thesis remains Bearish on the stock with the proposed valuation out of touch with the reality now that Elon Musk owns Twitter reducing the free speech aspects of Trump Media.
Read the full article on Seeking Alpha.
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