Guess what? Donald Trump is back in the news, and in high fashion too. If you don’t remember the last spell of Trump in the news, the January 6th insurrection happened and as a result, social media companies such as Twitter and Facebook banned Trump from their apps. This mattered a lot as Trump used these platforms heavily to communicate to his voter base, and he often posted some very controversial things there. Ever since, he’s tried to place some form of communication method, one being a daily blog on a specially curated website that ended up failing.
For now, though, he won’t be failing anymore, and that’s because he has now entered the stock market through a SPAC. Yes, SPACs, those IPO-like investment vehicles that were red hot at the beginning of 2020 but have fallen off since. The Trump Media and Technology Group announced that they would merge with SPAC Digital World Acquisition Corp., an under the radar SPAC that just got into the limelight today. Yesterday, it was valued at around 9 dollars, and today the price has skyrocketed to 40 dollars, marking the largest increase in a SPAC’s first day performance when a merger has occurred. DWAC was the most traded ticker on Thursday, and its movements resembled meme stocks, which was likely a major factor. Why wouldn’t meme investors buy Donald Trump’s SPAC, right? Trump’s goal is to raise enough money through the SPAC to create a new social media app called TRUTH Social, which they say will fight the tyranny of Big Tech and allow voices to be heard without being cancelled. Along with social media, they plan to create a news network that will rival giants like CNN and Fox. The SPAC deal values the Trump company at $875 million, and that number will surely rise. This marks a monumental turn in the Trump era as the app is protected by Section 230, which is ironic as Trump was trying to remove that act in his time as President. There have been many right-wing Twitter copies, which is getting people to believe that this will be an utter failure, but we just witnessed what happened in the market, and Trump’s direct backing of this is too powerful. It’s possible to say that this opens the campaign trail for 2024, but only time will tell. What do you think about the Trump SPAC?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.