Why Is Digital World (DWAC) Stock Trending Today?

  • Digital World Acquisition (DWAC) stock is trending after Kanye West agreed to buy Parler, a competitor of Truth Social.
  • DWAC is looking to merge with Truth Social.
  • DWAC stock rallied last week after Alphabet (GOOG, GOOGL) unbanned Truth Social from the Google Play Store.
DWAC stock - Why Is Digital World (DWAC) Stock Trending Today?

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Digital World Acquisition (NASDAQ:DWAC) stock is trending after Parler, a “pro-free speech” social network and blogging website that has predominantly attracted politically conservative users announced that it had sold itself to rapper Ye, formerly known as Kanye West.

Digital World Acquisition is looking to merge with TMTG, a company controlled by former President Donald Trump. TMTG has launched Truth Social, which, like Parler, has embraced “free-speech values” and has a predominantly right-wing user base.

Ye Buys Parler

West, who legally changed his name to Ye in 2021, supported Trump during his presidency and has openly embraced conservative ideas, indicated that his principles had motivated him to buy Parler.

“In a world where conservative opinions are considered to be controversial we have to make sure we have the right to freely express ourselves,” the rapper said in a statement.

This acquisition comes after Ye was banned from Twitter (NASDAQ:TWTR) and Instagram for antisemitic posts earlier this month.

Ye’s purchase of Parler could boost the website by giving it a great deal of publicity. Additionally, Ye may provide Parler with a significant amount of new capital that it can use to enhance its attractiveness and attract new users. As a result, the acquisition could help the platform take market share from Truth Social.

Truth Social Unbanned From Google Play

Last Wednesday, DWAC stock advanced after Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) returned the Truth Social app to its Google Play Store. “The platform had previously been barred from the Play Store for content moderation concerns,” CNBC noted. Subsequently, Truth Social decided to moderate its website more aggressively, causing Google to rescind its ban of the app.

The Performance of DWAC Stock

In the last five trading days, the shares are up 9%. However, they have sunk 22% in the last month, 41% in the last three months, and 66% in 2022.

As of this morning, DWAC stock is sitting down in the red by about 1%.

On the date of publication, Larry Ramer 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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