Trump Stocks Alert: What Is Going on with DWAC, PHUN, CFVI Stocks Today?
Since October 2021, investors and voters alike have been waiting for the launch of Truth Social, former President Donald Trump’s social media platform. This venture is part of the larger Trump Media and Technology Group (TMTG), which began making headlines after announcing it had entered into an agreement with a special purpose acquisition company (SPAC).
This news sent its SPAC partner, Digital World Acquisition (NASDAQ:DWAC), soaring to unprecedented highs. But in the weeks that followed, we also saw rises from several other companies tied to Trump, including Phunware (NASDAQ:PHUN) and CF Acquisition Corp VI (NASDAQ:CFVI).
Today brings another announcement that has Trump stocks shooting up again. Here’s what you should know.
What’s Happening with Trump Stocks?
Yesterday evening, news broke that the team behind Truth Social is planning to launch the platform in late February 2022, specifically on President’s Day. The Guardian reports that an Apple (NASDAQ:AAPL) app store listing has confirmed the mobile app is available for pre-order. As of now, there’s no word as to how many pre-orders the app has received. Still, data will likely be provided soon. And Trump stocks can be expected to rise accordingly.
The three stocks most closely associated with Trump all saw significant spikes yesterday on the Truth Social launch date news. This morning, all three have fallen back into the red, although it is likely they will regain momentum as discussion heats up around the anticipated launch.
Like DWAC, CFVI is also a blank-check company that rose to prominence after announcing a deal to merge with another Trump-linked firm — in this case, conservative video-sharing platform Rumble. The Canada-based platform has seen shares rise as a growing number of conservative U.S. politicians have moved their content to it.
Why It Matters
We all knew that the launch of Truth Social was coming in early 2022 and so far, TMTG seems to be on track with the platform’s debut. When news first broke about the social media venture, though, hackers responded by blowing up its web page.
This presented problems for the company’s tech team, but it didn’t seem to pose any negative effect on share prices. That demonstrates that the stock market gains were driven by pure momentum. Now, with the launch date quickly approaching, we’re about to see just how far that energy can take the company.
If the performances we saw from Trump stocks yesterday were any indication, all three companies will see shares rise considerably. What’s unclear as of now is how long the growth will last. There is the possibility that big tech won’t react well to the app launch. After all, Trump was banned from Twitter (NYSE:TWTR) and Facebook (Meta Platforms (NASDAQ:FB)) after supporters stormed the U.S. Capitol during the insurrection on Jan. 6, 2021.
One year later, Trump is gearing up to take on big tech in the only way he knows how. If Truth Social becomes a venue for more powder-keg political divisiveness, though, it could get the same treatment Parler received. The original right-wing Twitter was banned from Amazon (NASDAQ:AMZN) and the Apple app store for “posts that encouraged violence, denigrated various ethnic groups, races and religions, glorified Nazism, and called for violence against specific people.” Further, DWAC could see legal troubles down the road if the U.S. Securities and Exchange Commission (SEC) probe turns anything up.
What It Means
The weeks between now and President’s Day are going to be exciting as the Trump stocks rise in anticipation of this important market catalyst. Trump has big plans for TMTG. Plus, if the platform’s launch goes well, he will likely turn his attention to planned video-on-demand service TMTG+. That venture will likely create significant opportunity for Rumble and send CFVI stock up even more.
As of now, much remains unknown regarding the long-term future of Trump stocks. In the short term, though, investors should be paying close attention.
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.