One special purpose acquisition company (SPAC) stock that continues to garner a tremendous amount of attention among investors is Digital World Acquisition (NASDAQ:DWAC). Today, however, DWAC stock is down another 15% at the time of writing. That brings its cumulative two-day decline to around 25%.
Any stock that loses a quarter of its value in two days is worth looking at. Digital World in particular — a SPAC set to bring former President Donald Trump-backed Trump Media & Technology Group public — has been a hot-button blank-check company for quite some time.
Of course, the political element with this SPAC has enticed many investors. Plus, many investors who got in early on DWAC stock are still up big. However, the stock is also down meaningfully from its high of $175 per share. It has dropped more than two-thirds of its value from that peak.
Let’s dive into what’s behind the dramatic decline for this popular SPAC.
DWAC Stock Sinks Again on Executive Departures
Yesterday, news that two key technology executives have left Truth Social started the decline in DWAC stock. Reportedly, chiefs Josh Adams and Billy Boozer departed from the team. This follows the rather unimpressive launch of the app in late February.
Indeed, it appears the launch of the Truth Social has not gone as expected. According to Bloomberg, downloads for the app have sunk 95% since launch. Some users have also derided the lack of content from Trump, while others are discontent about waiting lists and a lack of access to the app’s “full functionality.” Accordingly, while little insight has been given into why the two executives have left, it’s clear Truth Social has lost its strong momentum from the outset.
How Truth Social performs from here remains to be seen. But with key leaders of the project already departing, the outlook doesn’t look great. As such, investors appear intent on sitting on the sidelines for now.
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.