Stock in companies related to former President Trump rose overnight after he won the Iowa caucus. Digital World Acquisition (NASDAQ:DWAC) stock, which has been trying to merge with Trump Media and Technology Group (TMTG), the owner of Truth Social, rose 8% to $18.76 per share.
Phunware (NASDAQ:PHUN), which has been trying to build conservative mobile networks, jumped 93% but still only sells at 15 cents per share. Rumble (NASDAQ:RUM), which has a conservative version of YouTube, rose almost 4%.
Trump Money
Digital World still expects to complete the TMTG merger in the current quarter. Its stock outpaced other Trump-related stocks during 2023, finishing with a small gain. Rumble fell 40%, and Phunware lost 90% of its value during the year.
Trump stocks were also helped by rival Vivek Ramaswamy dropping out of the race, making it more likely Trump will be the 2024 nominee. Florida Governor Ron DeSantis and former U.N. Ambassador Nikki Haley are the only two challengers left.
Phunware was the most traded Trump stock, with 17.5 million shares changing hands by 5 a.m. Eastern. This was true despite being furthest from having a product in the market.
Rumble had a September quarter loss of $29 million, 14 cents per share, on revenue of $18 million. The company said in its earnings release it had 58 million unique monthly users. It was focusing on expanding its Rumble Advertising Network. During the fourth quarter, it released a beta version of its Rumble Studio software.
Trump stocks often move on news about the former president. Shares surged after his indictment last March.
Trump himself has complained the rising stock market just “makes rich people richer” while predicting the market will crash if he isn’t elected in November.
DWAC Stock: What Happens Next?
Trump’s win and the jump in stocks related to him are reminders that political events remain an important risk factor in the 2024 stock market.
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As of this writing, Dana Blankenhorn 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.
