Digital World Acquisition Corp (NASDAQ:DWAC) has been falling for the past two days. The week began with news that the U.S. Securities and Exchange Commission (SEC) launched another probe into the merger between Digital World and Trump Media and Technology Group (TMTG). Today, DWAC stock is back in the green after the former announced that it will continue with plans to merge, regardless of the SEC investigation. But even as shares rise, investors are left with troubling questions regarding the stock’s future.

What’s Happening With DWAC Stock

DWAC stock has been turbulent this morning. It spiked as markets opened but quickly dipped again. As of this writing, it is up almost 10% for the day. That said, the stock is currently on a downward trajectory and looks poised to dip back into the red soon.

Volatility is nothing new for DWAC. But does today’s positive news mean that the SEC probe doesn’t matter? Let’s take a closer look.

Why It Matters

Since the launch of Truth Social, the social media platform run by TMTG, DWAC stock has faced plenty of scrutiny from investors. Not without reason. The company was probed by the SEC months before the launch. In the weeks after it, shares plunged as downloads declined and executives jumped ship. The probe ended up being the least of the company’s issues, and most investors seemed to forget about it.

Months later, the tides have shifted. Former President Donald Trump’s return to Truth Social has helped keep DWAC stock relevant, but it has only seen occasional pops as opposed to sustainable growth. Everything hinges on the merger, which is likely why DWAC released a statement this morning assuring investors that it would proceed. As it notes:

“The Digital World team continues to diligently work towards completing the Business Combination, which includes approximately $1.25 billion of net proceeds to TMTG at close, assuming no redemptions by Digital World stockholders, in order for investors to have the opportunity to participate in the Business Combination.”

Everything seems fine at first glance. But investors should remember that DWAC’s partner has a checkered history when it comes to meeting deadlines. Truth Social missed the projected deadline to launch the beta version of the app in November 2021. Then, it failed to meet filing deadlines after its launch. It took so much time submitting its S-4 form that short seller Kerrisdale Capital speculated that the merger would never close. Many other investors were skeptical before the recent SEC probe. Now they have even less reason to trust that it will go through, regardless of statements by the company.

What It Means

The volatility that DWAC stock has demonstrated this morning indicates one thing: Wall Street still doesn’t trust that the merger will close. Truth Social has given investors so many reasons not to trust it that the word of its partner means very little. Both companies may be working toward the merger, but that doesn’t change the fact that a government agency is still investigating it and could produce evidence of unlawful conduct. If that happens, it will make it much harder for the deal to close.

Overall, this seems like the type of statement a company issues to urge investors not to panic. Does that mean they shouldn’t? Only time will tell, but every headline seems to raise more questions. Investors are likely to keep jumping ship before it sinks further.

On the date of publication, Samuel O’Brient 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.