Digital World Acquisition (NASDAQ:DWAC) stock is trending higher today on news that former president Donald Trump has made his first official post on the Truth Social app.
DWAC stock is up 4% today and trending on Twitter after Donald Trump Jr. posted a photo to his Instagram declaring that his father had posted on Truth Social. The post reads “Get ready! Your favorite president will see you soon!”
Digital World Acquisition is the special purpose acquisition company (SPAC) that is expected to take Trump Media and Technology Group public later this year. DWAC stock is up 63% year to date on enthusiasm for the launch of Trump’s new social media app.
What Happened With DWAC Stock
The Truth Social app was originally supposed to launch on Feb. 21, but has been delayed for unspecified reasons. That delay caused the price of DWAC stock to plunge 18% in a single day of trading, although the shares have since recovered. News that Trump has now made a post to Truth Social has sparked renewed excitement.
However, it is not clear if Trump’s first post indicates that Truth Social is now live for everyone to begin using or if its official launch is still to come. Devin Nunes, CEO of the Trump Media and Technology Group, said earlier this month that the social media app still needs to finish ongoing beta testing before the official launch. He did not give a timing for when the beta tests would be completed. Investors should note that the App store listing for Truth Social still includes Feb. 21 as the launch date.
Why It Matters
Donald Trump has been banned from Twitter and other social media platforms following the insurrection at the U.S. Capitol on Jan. 6, 2021. Trump Media and Technology Group has formed to give the former president and his supporters a platform heading into the 2024 presidential election. Currently, Trump is the frontrunner to represent the Republican Party in the next race.
DWAC stock has been rising this year on excitement for the launch of the Truth Social platform. Indications that the social media app’s launch is getting closer now has the stock moving higher once again.
What’s Next for Digital World and Truth Social
DWAC stock gets a nice bounce today on excitement that Trump has sent a message via the Truth Social app. However, many questions remain concerning the new social media platform and the timing of when Trump Media and Technology Group will begin life as a public company. Any further delays in the launch of Truth Social or the SPAC deal and DWAC stock could fall steeply. Investors should proceed with caution.
On the date of publication, Joel Baglole 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.