It seems like Digital World Acquisitions (NASDAQ:DWAC) isn’t a one-day-and-done fad stock riding on its news of bringing former President Donald Trump’s social media platform public. Today, DWAC stock is flexing significant gains once again. And, it’s come to the forefront of a certain group of traders’ attention. As Reddit-born meme traders discover DWAC, the stock is serving up some impressive upward momentum.
DWAC stock is coming into the fold thanks to yesterday’s unexpected news. Donald Trump will actually be attempting to implement his own social network. Trump Media & Technology Group (TMTG) is the currently private company that will launch Truth Social, a conservative social media platform, which emphasizes First Amendment rights.
Digital World Acquisitions is taking a huge stake in this project by bringing TMTG public via special purpose acquisition company (SPAC) merger. Indeed, SPACs have become very popular, especially in the last year; companies like Lucid (NASDAQ:LCID) and Robinhood (NASDAQ:HOOD) reached Wall Street this year via SPAC deals. DWAC’s acquisition of the polarizing, Trump-led media group might not be the safest PR move. But, it’s certainly proving lucrative for investors in DWAC stock.
Meme Traders Take Interest in DWAC Stock on Second Day of Huge Gains
DWAC stock is trading on huge volume today. Already, just minutes into the day’s session, 40 million shares of DWAC are exchanging hands; that’s already 10 million shares greater than the stock’s daily average. Of course, this monolithic volume is helping the stock as it surges 170% immediately.
The stock is also catching the eye of the ever-present meme traders, an equally polarizing force to those on Wall Street affected by the group’s activities in January around stocks like GameStop (NYSE:GME) and AMC (NYSE:AMC).
DWAC isn’t exactly the star of the show over at r/WallStreetBets. However, interest in the stock is surging as users’ discussion of the SPAC vehicle ticks upward. Some savvy investors over on the board purchased warrants in DWAC yesterday as the announcement took hold, and today, they are bragging about their successes as DWAC nears a 200% gain. Sentiment is, like anything else relating to the former president, quite divisive; many are firm in their investments in DWAC, while others are warning against pouring into the stock at this point. Indeed, many on the board believe DWAC is already topping out and ready to drop back down.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.