As one of the more polarizing stocks in the market, Digital World Acquisition (NASDAQ:DWAC) has certainly been on quite the rough ride. Over the past five days, DWAC stock has lost approximately 28% of its value. Much of that has to do with the recent departure of key executives this week.
In addition to this, the market environment for tech stocks and special purpose acquisition companies (SPACs) appears to be deteriorating. The release of March’s Federal Open Market Committee (FOMC) meeting minutes shed more light on how aggressive the Federal Reserve may be moving forward. Essentially, central bankers appear to be taking a harder stance against inflation. Now, investors are factoring in what this could mean for their portfolios.
Accordingly, Digital World — the SPAC looking to bring Truth Social’s Trump Media & Technology Group public — has had a tough time. However, there’s yet another company-specific headwind materializing right now.
Let’s dive into what investors in DWAC stock are watching today.
DWAC Stock Sinks Again on Continued Issues
In recent days, various reports form media outlets are highlighting the same issues with DWAC. However, there’s still strong pushback from those bullish on Truth Social. Specifically, former Congressman Devin Nunes recently suggested there’s a “phony” narrative in the media surrounding the platform’s issues. That has raised the eyebrows of some investors.
Right now, the market appears to be pricing in its own narrative. Shares of DWAC stock have tumbled on concerns around the rollout of the Truth Social app, as well as the company’s executive turnover. These technical issues are especially hard to dispute, with many eager potential users still unable to access the full functionality of the app.
Accordingly, DWAC stock appears to have fallen into a politicized bucket. Now investors, voting with their pocketbooks, are making informed decisions about what’s going on. Shares are currently down 4% for the day.
On the date of publication, Chris MacDonald 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.
