Digital World Acquisition (NASDAQ:DWAC) has seen quite a bit of turbulence this week — and it’s only Tuesday. Yesterday, Tesla (NASDAQ:TSLA) CEO Elon Musk made market history by reaching an agreement to acquire Twitter (NYSE:TWTR). While this news has delighted some, it doesn’t look good for Truth Social and DWAC stock. Created by Trump Media & Technology Group (TMTG), Truth Social was already facing plenty of negative market forces. Now, the company is likely facing an unwinnable uphill battle.
Today has brought several important headlines investors should be aware of. Despite the considerable headwinds that Musk’s new Twitter buyout promises to pose, it’s clear that TMTG isn’t ready to fold just yet. The company is maneuvering to stay afloat in the face of a shifting social media landscape. DWAC stock has been turbulent this morning, but it’s currently in the green, recovering from several earlier dips.
So, let’s break down today’s news and what it means for Truth Social and DWAC stock.
Top Headlines for DWAC Stock Investors
Trump SPAC is down 44% since Elon Musk disclosed Twitter stake
After plunging yesterday, DWAC stock appears to be rallying today. However, that doesn’t mean its growth is sustainable. Since Musk initially disclosed his stake in Twitter, bearish energy has engulfed DWAC stock. In the time leading up to yesterday’s news, DWAC only rose once. This pop was driven by a social media rumor that Musk was offloading some TWTR stock in order to take a position in Digital World. However, shares were quick to fall once the rumor proved untrue. Now, the stock is facing new obstacles as Musk readies his Twitter takeover.
Trump Media adds former Devin Nunes aides, Donald Jr. and ‘Apprentice’ contestant as officers.
One story turning heads today is about TMTG’s attempts to revamp the company. CEO Devin Nunes seems to have had a difficult job so far, but now he’s going to have some help. Specifically, the company just added Donald Trump Jr. and Wes Moss as directors. A financial advisor and former contestant on The Apprentice, Moss is credited with first pitching the former President on the idea for the platform. However, there’s little in Moss’ background that suggests he’s qualified to help run a social media company. Neither his hiring nor Donald Trump Jr.’s is much of a positive catalyst for DWAC.
Trump Media Registers As FL Business With Office In Sarasota
Still, one area TMTG can say it has made progress in at least is its location. Recently, the company officially registered as a business in the state of Florida. Patch reports that the company will operate from an office in Sarasota, having “filed its registration as a foreign profit corporation” on April 18. Aside from Nunes, CFO Phillip Juhan and COO Andrew Northwall, five other directors are listed.
Shortly after the registration filing, the company also migrated to conservative video-sharing platform Rumble’s cloud infrastructure. While this deal did help Rumble’s blank-check partner CF Acquisition Corp VI (NASDAQ:CFVI) rise, it did little for DWAC stock. Setting up a corporate office in Florida won’t address the company’s root problems, either.
On the date of publication, Samuel O’Brient did not hold (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.
