There’s no shortage of controversy surrounding Digital World Acquisition (NASDAQ:DWAC), which has an in-progress special purpose acquisition company (SPAC) merger with Trump Media & Technology Group (TMTG). The company’s most notable asset is the Truth Social app, and some recent data points may disappoint DWAC stock investors.
TMTG is led, as one would expect, by former President Donald Trump. He proclaimed that “there will be no shadow-banning, throttling, demonetizing, or messing with algorithms for political manipulation” with TMTG and Truth Social.
Evidently, Truth Social will be just one of multiple TMTG products. The company expects to launch the TMTG+ subscription video-on-demand service, as well as a podcast network. For the time being, though, all eyes are on Truth Social.
An investor presentation anticipates that Truth Social will have 81 million total users by 2026. If that happens, then shares of Digital World Acquisition/TMTG could provide multi-bagger returns.
It might not be so easy to achieve 81 million users, though. So far, the data suggests that Truth Social may be off to a rocky start.
According to a report from Bloomberg, daily downloads of the Truth Social app declined 95% since last month’s launch. Furthermore, research firm Apptopia has determined that daily Truth Social app downloads have declined from 170,000 initially, to 8,000 more recently.
In the early stages, some people may have received error messages when attempting to sign up for Truth Social. However, the app’s recent decline in daily downloads can’t simply be blamed on technical glitches.
This doesn’t necessarily mean that Truth Social won’t gain traction in the coming months. After all, it’s still the early innings for this buzz-worthy social media platform.
DWAC stock traders should keep a close watch on upcoming data releases concerning Truth Social. If the numbers don’t pick up at some point in 2022, it’s going to be challenging for the app to achieve the 81 million user target. Consequently, shares of Digital World Acquisition may have already peaked and could be headed for a downfall.
On the date of publication, David Moadel 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.