The Trump trades are off to a great start this week, bringing big news from both CF Acquisition VI (NASDAQ:CFVI) and Phunware (NASDAQ:PHUN). Digital World Acquisition (NASDAQ:DWAC), the blank-check firm associated with former President Donald Trump, is also on the move. DWAC stock is proving today just how powerful market momentum can be.
What’s Happening With DWAC Stock
DWAC stock spent most of the day rising alongside its peers, gaining as much as 13%. However, in the late afternoon, shares turned around, closing down 0.7%. CFVI stock and PHUN stock also trimmed their gains, ultimately closing up 16% and 18%.
So what caused the moves in DWAC stock today? While there was no new company news, shares were moving alongside CFVI and PHUN. Then, investors began reaction to an announcement from Feb. 4 that Truth Social’s launch would be delayed at least until March.
That doesn’t mean much for DWAC stock, though. As previously noted, speculation helped the stock break out and has kept it elevated for months since. The prolonging of the launch is likely to give it more time to rise.
Why It Matters
DWAC’s peers had strong news to report. Phunware announced a strategic partnership with another Trump-linked company, causing its shares to rise. CFVI is enjoying the ride as its merger partner Rumble moves to secure a partnership with popular podcast host Joe Rogan.
What’s clear from this picture is that DWAC stock is moving in solidarity with its Trump-linked peers. What’s different about this scenario is that DWAC is typically the leader of the pack. We’ve often seen CFVI move in solidarity when a Truth Social announcement has pushed DWAC upward. While both companies are linked to the developing social media platform, DWAC stands to benefit more as its partner.
While we still don’t know for sure when Truth Social will actually launch, we do know now that it will likely be some time in March. In many ways, dragging out the launch is what’s best. DWAC has the constant benefit of mounting momentum behind it as supporters eagerly awaits its debut.
What It Means
Even on days when there is no specific news, DWAC stock manages to ride the wave generated by its smaller Trump-linked peers. This makes it an excellent short-term play. The only question is, just how short?
Both DWAC and CFVI should be among the social media stocks to watch as the Truth Social launch nears. In the coming weeks, DWAC, CFVI and PHUN are all likely to keep moving with volatility.
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.