Stock of SPAC buying Truth Social jumps after Trump posts for first time in months
Shares of Digital World Acquisition Corp., the special purpose acquisition company that is buying the company behind Donald Trump’s Truth Social, soared in after-hours trading Thursday after Trump posted a message on the platform for the first time in months.
“I’M BACK! #COVFEFE,” Trump posted on Truth Social on Thursday afternoon, with a photo of himself at his Mar-a-Lago estate in Florida. “Covfefe” was one of Trump’s more infamous Twitter typos, which grew into a meme of its own.
Shares of DWAC
initially shot more than 25% higher late Thursday after Trump’s post, which suggested the former president may be more active on the fledgling social network, though gains settled to 15% by the end of the extended session. That was after the stock closed the regular trading day up about 8%, at $48.06.
In October, DWAC announced it would buy Trump Media & Technology Group, owner of Truth Social, which aims to be a competitor of Twitter Inc.
Facebook. The platform debuted in February, but has been plagued by technological glitches and low user numbers.
DWAC shares plunged to a six-month low Monday on reports that “free speech absolutist” Elon Musk would buy Twitter and potentially restore Trump’s account, which Twitter banned in January 2021, after the Capitol insurrection, at the time citing the “risk of further incitement of violence.” But the stock has improved over the week — up 27% — after Truth Social CEO Devin Nunes told Fox Business that Trump has no interest in returning to Twitter. Trump said as much himself earlier in the month.
Before Thursday, Trump had only one post on Truth Social, saying in February: “Get Ready! Your favorite President will see you soon!”
DWAC shares are down about 28% over the past three months, but only down 6.6% year to date, while the S&P 500
is down 1% over the past three months and off 10% year to date.