DWAC Stock: Recovery or Time to Invest Elsewhere?
Digital World Acquisition Corp. (DWAC) made it to the spotlight this spring after former US President Donald Trump discussed merging it with Trump Media & Technology Group (TMTG). However, since then, the company seems less active. So, what’s happening? Does the stock need more time to recover, or should investors think about investing in something else? Let’s see how the DWAC shares are faring, and whether they have the potential for amassing profits, especially considering the current state of DWAC stock.
What Is Digital World Acquisition Corp. And Why Did It Become So Popular?
Founded in 2021 in the US, DWAC was a special-purpose acquisition firm. That means it was actually a shell corporation, and the founder team was listed on a stock exchange to purchase or merge with other private firms. That would enable them to make their company public without going through the necessary regulatory loops, such as the initial public offering process, for example.
The company’s CEO is Patrick Orlando, and in October 2021, he announced that they had discussed a merger agreement with TMTG. The latter was concluded successfully in March 2024.
Trump Media & Technology Group Corp (TMTG) focuses on social media and technologies. It is mainly known for its popular social media platform – TruthSocial. Furthermore, this firm encourages blue-chip technology companies to connect with each other despite their political inclinations. Its platform is a neutral territory where the tech giants can discuss their ideas and achievements.
Besides, the firm is currently working on TMTG+, a subscription-based video streaming service. The latter will give customers access to podcasts, non-woke entertainment, documentaries, news, and more.
Considering TMTG’s reputation and Trump’s backing, the merger with this company should be a great boon for DWAC. However, Donald Trump’s trial caused big turmoil in the markets, with investors speculating whether it was a good idea to invest in these shares.
Such a reaction wasn’t unexpected, as typically, stock prices flounder if there are some scandals attached to them, and the worse the scandal, the lower they sink. Price movements often depend on the stellar reputation of the company. Still, most analysts believed at that time that both firms would weather this scandal and continue flourishing. Did their forecasts come true?
The DWAC Stock Price Today – How Is The Company Faring?
The shares were exchanging hands at $49.95 on Monday. They opened at $36.94 and managed to gain approximately 13.01% in this session. However, the stock experienced some brutal losses over the past month.
Furthermore, Digital World Acquisition Corp. hasn’t reported any significant operations thus far. That is one of the reasons why it’s not gaining. Positive news helps stocks to gain traction and rise, while also attracting investors’ attention.Unfortunately, this company seems at a standstill. It might rebound in the coming months, but for now, there is no notable activity to boast about.
Still, investors should consider that it has recently merged with another company, and such events take time. Its inactivity might be just a short-term pause while it’s sorting out how to continue developing.
Despite its lower activities, traders were bullish in this session, and that itself makes for interesting DWAC stock news today. While short-term gains aren’t the best measure of the stock’s overall performance, the fact that the market participants are showing interest in it indicates that there might be some changes in the company’s future development.
Currently, its trading volume stands at 22,155,900, while the market cap hit $1,858,689. These figures are substantial.
What About The DWAC Stock’s Price History?
The DWAC Stock charts and data show that its value has been decreasing steadily over the last few months. It hit a record high of $101.87 on March 02, 2022. Moreover, the shares plunged to their lowest point on March 16, 2023, trading at $12.34 per share.
Furthermore, during the last 52 weeks, the stock reached its highest price while trading at $58.72. That happened on January 23, 2024. This price is still significantly lower compared to its all-time high of $101.87.
On the other hand, its lowest price during the same period of time was $13.11, which the shares hit on August 25, 2023. In the beginning of the same year, Digital World Acquisition Corp (DWAC) traded at $51.68. However, it closed that year at $15.00. Thus, it shaved off more than 70.98% during 2023.
What Do The Analysts Predict For DWAC?
Analysts’ predictions differ about this stock. Some of them think that it might recover in the coming months, while others forecast further losses. According to the optimist experts, the shares will hit $67.75 in 2025, increasing by 35.63%. They also set the price target at $310.96 (522.53% rise) for 2030.
On the other hand, skeptics suggest that it will trade only at $12.06 in the same year. Thus far, price activity supports those who think that the stock will decline in the next 12 months. However, at this stage, it’s hard to say definitely how it will turn out.
Investors should watch closely the developments of this company. Various chart patterns will also help with calculatingthe odds. For example, the DWAC stock candlestick chart will give traders more insights into its movements.
Ultimately, a lot depends on the market conditions, investor sentiment, and the company’s steps to regain losses. If you still contemplate purchasing its shares, we’ll advise you on how to buy DWAC stock. But remember that this investment contains a higher level of risk at this point.
Thanks to the merger with Trump’s company, you can already purchase DWAC stock on the public exchanges. For that,you need to select a broker and register on its platform. Open your account and make a deposit after you finish the verification process.
The next step is to decide how much you want to invest in this company and buy the corresponding amount of shares. You can easily manage your investment from your private account.
What Are Donald Trump’s Plans For The DWAC?
Donald Trump might gain substantial amounts of money if DWAC stock recovers. Securities regulators approving Trump Media & Technology Group’s merger with DWAC means that the company managed to save lots of money and time to go through the official process. According to the latest calculations, this success might increase Donald Trump’s stake by nearly $4 billion.
Winning this regulatory battle is great news for Trump and his business. They have worked on this project since October 2021, but regulatory concerns and other obstacles have dragged the process for many months.
According to the plan, this merger would enable Trump Media to get additional capital and expand its operations. However, as the process took longer than the parties anticipated, DWAC had to return investors several hundreds of millions for its financing commitments.
With that over and done with, Trump still stood to gain almost 79 million shares in this new business. But, his trial complicated things.
The judge in his civil fraud trial prohibited the former president from running his New York-based company for three years. The latter was the hub of Trump’s global empire. Moreover, the judge ordered the Trump Organization to pay penalties. Overall, Trump and his corporation had to pay $354 million.
This news caused the DWAC stock’s immediate downfall, and since then, the shares continued declining. Trump Media CEO Devin Nunes stated that they aim to accelerate work to regain all these losses, but this process takes time.
Meanwhile, investors should consider carefully whether the DWAC shares are worth buying. The stock market is sometimes unforgiving when companies face such obstacles as this one had to contend with. And while it might manage to recover in the long run, thanks to the shareholders’ support and substantial market capitalization, for now, the stock remains in bearish territory.
The post DWAC Stock Seems at a Standstill. What Is the Forecast? appeared first on FinanceBrokerage.