Truth Social has finally launched. The social media platform, created by former President Donald Trump went live yesterday, fulfilling his initial promise for a Feb. 21 debut. The resulting buzz has pushed Digital World Acquisition (NASDAQ:DWAC) stock into the green.
So what else do you need to know?
Truth Social shot to the top of the download list for Apple’s (NASDAQ:AAPL) App Store shortly after being made available. DWAC stock has also been rising as the buzz surrounding the platform has grown. Shares are up roughly 4% of this writing.
Why It Matters for DWAC stock
Digital World Acquisition has been fascinating to watch. After agreeing to merge with the Trump Media and Technology Group, it shot to historic highs overnight. Since then, it has withstood probes from the Securities and Exchange Commission (SEC) and still managed to gain. As InvestorPlace contributor Josh Enomoto recently noted, it “defies traditional analysis.”
That said, the launch hasn’t been perfectly smooth for Truth Social. When the platform was first announced in October 2021, a hack revealed it had many internal glitches. When investors learned that the launch would be delayed until March, many saw it as a sign that TMTG was working to strengthen its product.
Since Truth Social debuted yesterday, though, users have reported problems. Two reporters from Business Insider detailed difficulties they experienced after downloading the app. The Daily Beast reports that some users have struggled just to create an account.
What It Means
Does this mean that DWAC stock isn’t a good buy? As of now, it’s difficult to say. What we do know now is that while investors are excited, some users are disappointed in the Truth Social product.
Earlier this month, Enomoto issued a bullish take on DWAC stock on the grounds that Trump “couldn’t lose.” Even if that’s true, it doesn’t mean that his platform can’t. As Reuters has reported, Truth Social can only succeed if Apple and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) host it in their app stores.
For investors, it’s clear that the hype from the Truth Social launch is enough for now. In the long term, caution may be necessary as investors — and users — figure out what comes next from the TMTG.
On the date of publication, Samuel O’Brient did not hold any position (either directly or indirectly) 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.
