After Twitter (NYSE:TWTR) and Facebook (NASDAQ:FB) banned him, former President Donald Trump has finally made good on his promise to launch his own social media platform, titled Truth Social. The app is slated for a beta launch in November, and for public release in early 2022, pending no further complications. It doesn’t stop there, though. The Trump Media & Technology Group, the company under which the platform will operate, has already entered into an agreement to merge with Digital World Acquisition (NASDAQ:DWAC). This tentative deal has been good for DWAC stock so far.
The Truth About DWAC Stock
Since news of the merger was announced yesterday, DWAC stock has spiked. It has risen more than 85% during the first hour of trading and shows no signs of slowing down. These gains are significant for the acquisition company, whose shares had flatlined at just over $10 apiece for the entire month prior to the announcement.
The big tech giants of the social media space such as Facebook and Twitter, who Trump’s platform was created to rival, are not off to such a good start today, with shares mixed in morning trading.
What It Means
It’s not surprising at all that Trump is launching a venture to give himself a new platform. His 2016 performance demonstrated the power of social media for presidential candidates, but since his removal from Facebook and Twitter, he’s been left without a digital megaphone.
The timing of Truth Social’s release also makes sense. In the year to come, conservative politicians are going to start giving serious discussion to mounting presidential campaigns in 2024 and Trump has hinted many times that he’d like to run again. Without the use of mainstream social media platforms, building his own platform was the only logical step forward.
As it stands though, Trump’s team may have some kinks to work out. Newsweek reported this morning that the still-developing platform may have been hacked within hours of the announcement. Details are still emerging but it’s clear that many people won’t be happy about Truth Social’s launch.
Why It Matters
Interest in this new venture of Trump’s is strong, in part because it’s been months since the general public has heard any major announcements from him. What’s unclear is how long the current market momentum that is driving DWAC stock up will continue. Trump’s attempts to launch a blog following his ban from social media in early 2021 didn’t particularly succeed. However, Facebook is currently embroiled in controversy, so interest in alternative platforms is high now.
Its also worth remembering that SPACs often start strong but can quickly lose momentum. DWAC stock and the Truth Social SPAC may be different, as it will have the benefit of consistent media coverage as the platform’s launch nears. It’s worth watching as the world prepares for this catalyst.
On the date of publication, Samuel O’Brient 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.