So-called Trump stocks have been on quite a tear recently. Indeed, the breakout stock of the late fall 2021 season continues to rise despite news that would typically trouble many investors. Digital World Acquisition (NASDAQ:DWAC) first rose to prominence in October 2021 when former President Donald Trump announced that the blank-check company would be serving as the SPAC (special purpose acquisition company) partner for his social media venture Truth Social. The stock most recently made headlines, though, when news broke that the SEC (Securities and Exchange Commission) had launched a probe into it.
Just before this, Canadian video-sharing platform Rumble announced plans to go public by merging with CF Acquisition Corp. VI (NASDAQ:CFVI). Shares of the latter took off after it was confirmed that its partner counted the former president as a member. Naturally, talk quickly turned to Trump stocks amid speculation that CFVI was “the next DWAC.”
Trump Stocks Are On the Rise Today
Since markets opened today, DWAC stock has been rising steadily. As of market close, it is up by more than 28% and continues to gain after hours. CFVI stock has followed a similar trajectory today, moving upward all morning and spiking in the afternoon. This pattern has put it in the green by more than 14% for the day.
While there hasn’t been any breaking news, we may be about to learn exactly why these Trump stocks have taken off.
What’s Going On
A few days ago, it was announced that former Trump White House insider Devin Nunes would be serving as CEO of the Trump Media & Technology Group, the company of which Truth Social will be a subsidiary. While this news didn’t do much for Trump stocks, the story is only just starting to develop.
Late this morning, Sharmila H. Viswasam, a day trader and Wall Street Journal contributor who has gained notoriety on Twitter (NYSE:TWTR) for her support of Trump, tweeted the following.
— Sharmila H. Viswasam💫 (@RealtorStarShar) December 8, 2021
As it turns out, there were more details to uncover. Yesterday, CFVI submitted an EDGAR (Electronic Data Gathering, Analysis and Retrieval) filing to the SEC that refers to a “Lutnick Interview.” This presumably refers to Howard Lutnick, CEO of Cantor Fitzgerald, the financial services firm of which CF Acquisition Corp is an arm. The way it looks from here, Rumble has confirmed that it is working with the Truth Social. This would also explain why these two stocks appear to be moving in tandem
The Bottom Line
To be very clear, everything laid out is highly speculative in nature. All we know for sure is what has been filed. We can’t definitely say what any of it means, but we can certainly speculate that it is likely that both companies are working together. This is a fascinating development, particularly as one of the matters with which the SEC is most concerned is with DWAC’s communications with Trump’s team before the merger was announced.
This story is just starting to unfold, but it’s absolutely worth watching closely as it does. Both Trump stocks have had a very good trading day. This could certainly hint at a prosperous future for both DWAC and CFVI as the momentum behind Truth Social continues to build.
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.