There’s little to concretely suggest which way Digital World Acquisition Corp. (NASDAQ:DWAC) stock will go. It is still very early in the game. The company will bring the Trump Media & Technology Group public sometime in 2022.
That company will then trade under the TMTG stock ticker on the Nasdaq. The Truth Social app is central to DWAC stock and the future direction of TMTG stock. However, Truth Social has partially rolled out and already faces early hurdles.
Remember, Truth Social is former President Donald Trump’s answer to reaching a digital audience following his Twitter (NYSE:TWTR) ban in the wake of the Capitol riots on Jan. 6, 2021. Trump outlined the app’s direction late last year, saying, “Unlike with the Big Tech platforms, there will be no shadow-banning, throttling, demonetizing, or messing with algorithms for political manipulation. […] We will not be treating users like lab rats for social experiments, or labeling alternative views as ‘disinformation.’”
Truth Social was released in beta a few weeks ago. That rollout made the app available to Apple (NASDAQ:AAPL) users. Those users reported technical issues including trouble logging in, account creation issues, and wait-listing.
This was not the strong start Trump, DWAC, or the Trump Media & Technology Group anticipated, to say the least. Trump pundits chalk up the early difficulties to overwhelming demand. Those on the other side of the aisle point to it as proof that Trump’s businesses are primarily failures.
The Rollout Continues
My point is that you can’t determine much at this point. Chief Executive Officer Devin Nunes states that “Our team is working literally around the clock 24/7. […] And as we grow and as we add people, we squash bugs, we’re making changes right. Matter of fact, we should have in the next day or two another Apple update.”
Truth Social previously said that a full rollout might not occur until the end of March. If that occurs earlier, DWAC stock will benefit. If it occurs at the end of March, DWAC stock could still appreciate.
DWAC share prices are simply speculative. Anyone who tells you that they know anything definitively is doing you a disservice.
Trump is certainly a galvanizing figure. If anyone could be the face of a social media platform to voice the opinions of the right, he’s as good a choice as there is. But there’s bound to be emerging competition and other platforms will pop up. Truth Social is by no means the conclusive winner. For example, Parler and Gettr could easily end up dominating the space.
Trump Media & Technology Group is slated to also launch on-demand video and podcasts moving forward. So, TMTG stock will have many opportunities to capitalize on an emerging trend.
The company anticipated that it should have 15 million Truth Social users by 2025. TMTG+, the on-demand video and podcast business, is expected to contribute another 10 million subscribers.
Those are simply projections rooted in wishful thinking. I say that not to discredit anyone, it’s just that all projections reflect wishful thinking. The right-wing media landscape could change significantly by 2025, so TMTG could be anything by then.
What to do With DWAC Stock
Little has been written yet. The DWAC/TMTG saga is early in its history. I don’t think anything has changed because of early technical glitches during the launch of Truth Social.
The left still hates the right, and the right still hates the left. That implies that Truth Social should be able to draw a strong user base moving forward.
If you were interested in DWAC stock before, I can’t see a legitimate reason why you wouldn’t be now. If you never were, those technical glitches serve to reiterate your position. DWAC stock still has plenty of room to rise despite early hiccups.
On the date of publication, Alex Sirois 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.