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PHUN Stock Alert: Why Is Phunware Rocketing Higher Today?

With a new year underway, plenty of eyes remain on former President Donald Trump. This is good news for the Trump trades, which, so far, have enjoyed an excellent year. While one company linked to the former president didn’t see as much momentum as its peers in late 2021, that may be about to change. Indeed, Phunware (NASDAQ:PHUN) is coming off a difficult year and still receives fairly consistent criticism. PHUN stock is off to a good start this week, though. The enterprise-cloud platform began today by announcing a strategic partnership that has shares rising.

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Source: Blackboard / Shutterstock

What’s Happening With PHUN Stock

Phunware is known for its work in political campaigns. Today, it confirmed a partnership with another innovator in the space. Campaign Nucleus describes itself as “an automated digital ecosystem made for efficiently managing political campaigns and organizations.” Most noteworthy, though, is the fact that it was founded by Trump insider Brad Parscale.

News of the partnership has sent PHUN stock on an upward trajectory since markets opened today. As of this writing, it is up more than 20% for the day and seems to still be rising. Today’s momentum has pushed it into the green for the week by more than 37%. Although its gains for the month aren’t that high at 15%, this points toward a potential turnaround for PHUN stock.

Why It Matters

Most people learned Phunware’s name during the October 2021 rise of Digital World Acquisition Corp. (NASDAQ:DWAC). The blank-check partner of the Trump Media & Technology Group (TMTG) set market records overnight when it was announced that it would be taking Truth Social public. The social network itself doesn’t have a specific launch date yet, but DWAC stock has enjoyed a generally good ride. It’s rising today along with PHUN stock and fellow Trump trade CF Acquisition Corp. VI (NASDAQ:CFVI), the blank-check partner of video-sharing platform Rumble.

Despite the ambiguity surrounding Truth Social, its momentum is clear. It helped keep the Trump trades elevated in the months since DWAC’s iconic rise. However, Phunware has no direct ties to the platform. That’s likely the primary reason it has failed to ride the Trump trades wave. Its new partnership, though, is likely exactly what the company needs. When PHUN stock has shot up, it has been on rumors that it will be used by Trump again, either to host Truth Social or for campaigning purposes.

A partnership with a campaign tech company founded by Parscale hints toward the type of future that investors want to see. The former Trump campaign advisor has proven he has the ability to boost penny stocks, at least in the short term. Last month, one tweet about an unknown company called AiAdvertising (OTCMKTS:AIAD) sent the penny stock shooting up. AIAD is also in the green today, likely moving in solidarity with PHUN stock due to the Parscale ties.

What It Means

Trump hasn’t confirmed that he’ll be mounting a presidential campaign in 2024 yet, but many experts believe he will be running. His recent Arizona rally suggested to many experts that he has every intention of throwing his hat back into the political ring. If he does, it’s likely he will again be working closely with Parscale and employing the tech he recommends. That will mean a significant bump for both PHUN stock and AIAD. And the partnership with Phunware and Campaign Nucleus seems like the perfect precursor to just such a future.

As of now, the future of all stocks linked to Trump remains uncertain. InvestorPlace contributor Chris Markoch speculates that the Trump trades will fall after Truth Social’s launch. Regardless of if that happens, more and more attention will shift toward Trump’s potential campaign as it nears. That means a renewed focus on the stocks linked to his previous ones.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/02/phun-stock-alert-why-is-phunware-rocketing-higher-today/.

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