Digital World: Diminished Opportunity
- Digital World Acquisition SPAC agrees to a settlement with the SEC costing a civil fine of $18 million.
- The deal with Trump Media and Truth Social appears close to actually closing after a painful period in purgatory.
- DWAC stock at an ~$3.8 billion valuation is vastly overvalued for the diminished opportunity in the social media space.
While Digital World Acquisition Corp. (NASDAQ:DWAC) appears poised to settle with the SEC in a plan to allow the SPAC deal to finally close, Truth Social is still struggling to make any real business progress. The social media platform owned by former President Donald Trump has seen a lot of its purpose as an independent platform disappear. My investment thesis remains ultra Bearish on the SPAC deal trading nearly 50% above the SPAC deal price after the big rally on the SEC settlement news.
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