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DWAC Stock Rises After Musk Reclaims Trump on Twitter


Digital World Acquisition Corporation (DWAC) stocks cut losses, gaining on Monday after Elon Musk restored former President Donald Trump’s Twitter account on Sunday. The special acquisition company, which aims to bring Trump’s social media platform to the public, will also have a vote of other shareholders on Tuesday, in an effort to extend the deadline for completing the merger. import.




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DWAC stock fell more than 5% on Monday before closing up 0.6% in market transactions. The stock was up 7% on Friday.

On Friday night, Tesla (TSLA) CEO Elon Musk, who took over Twitter on October 28, posted a poll from his account, asking members of the public to consider whether to reinstate Trump’s account. or not. 24 hours later, Musk tweeted that “everyone has spoken. Trump will be reinstated.”

The Twitter poll appears to have over 15 million responses with 51.8% of the vote favoring Trump returning to Twitter.

Musk and Trump’s love affair

However, Trump has said he will not return to Twitter.

“I don’t see any reason for that, they have a lot of problems at Twitter, you see what’s going on. It may work, it may not work,” Trump said during the regular leadership meeting. anniversary of the Republican Jewish Union on Saturday .

Trump also signaled on Truth Social that he would stick with his social media platform and not start tweeting.

“Let’s actively vote now, but don’t worry, we’re not going anywhere. Truth Social is special!” Trump wrote on Saturday.

Musk appeared to have responded on Twitter on Sunday, posting an image depicting a woman, representing Twitter, and a priest, representing Trump.

“And let us not be tempted,” the billionaire wrote.

DWAC Stock And The Trump Brand

DWAC is a special-purpose acquisition company trying to bring the former president’s tech and social media platforms public in the sort of reverse merger that was popular a few years ago. The company reported last week that it had continued to bleed money. SPAC said it lost about $3.4 million in the most recent quarter ended September 30, according to SEC filings. The group has a loss of $9.6 million through 2022.

The future of DWAC and efforts to bring Trump Technology and Media Corporation to the public is tied to the values ​​of the Trump brand. Another presidential bid is seen as a big hit for the brand. Trump Media is the parent company of conservative social media platform Truth Social.

DWAC stock fell last week after Trump officially announced that he would once again seek the Republican nomination as the presidential candidate in 2024. This was a shift after the stock. DWAC surged about 70% in early November when news broke that Trump’s presidential run was imminent. DWAC stock is now up about 50% in November.

DWAC stock also fell after the midterm elections, when Republicans fell short of expectations. The performance was seen by some as a repudiation of Trump-backed candidates. In the face of doubts about the midterm election results, another presidential run is the most obvious short-term path to strengthening the appeal of the Trump brand.

DWAC General Meeting of Shareholders

In early November, DWAC stock spiked after SPAC delay a shareholder vote – sixth – on whether to approve a one-year extension to finalize the merger with Trump Media.

The shareholder meeting is currently set for November 22, but the timer is ticking. The deadline for DWAC to complete the merger with Trump’s company was initially early September. However, SPAC claimed a Securities and Exchange Commission investigation into the deal delayed the process. procedural.

With DWAC shareholders failing to complete the September vote, SPAC’s sponsor, ARC Global Investments, contributed approximately $2.9 million to extend the merger deadline through December 8. , according to federal records. The vote arranged by DWAC management offers shareholders the opportunity to extend the deadline to September 8, 2023.

Now that DWAC has funding, the SPAC technically has until December 8 to get an extension consent form.

A presidential bid may be enough to urge shareholders to vote to extend the deadline. On the other hand, DWAC has warned investors that without a one-year extension, the company is likely to cease operations and liquidate shares.

In an SEC document, the DWAC revealed that between September 19 and September 23, it received termination notices from private investors in public equity (PIPE) representing approximately 139 million dollars. In its quarterly report on August 23, the company said it lost $6.2 million in the first half of this year. And according to the most recent filing, it is continuing to lose millions of dollars.

DWAC stock with Musk in charge of Twitter

The recent volatility in DWAC stock comes as Musk takes the helm of Twitter, changing the way the social media platform works.

Musk has almost halved the social networking site’s staff while regularly tweeting about his political plans and views. Musk has also directly responded to customer complaints and suggestions. There was widespread confusion about the verification features being implemented and there was speculation that the company might go bankrupt.

On Friday, Musk tweeted “Twitter’s new policy is free speech, but not free access.”

Musk said “negative/hate tweets” will have monetization disabled and other users won’t be able to find the tweet unless they specifically search for it. Musk added that this only applies to tweets, not accounts.

Musk’s focus on Twitter is taking its toll on Tesla stock, According to some analysts. Tesla stock is up about 20% since Musk took over Twitter on October 28. On Monday, Tesla stock fell 6.8%.

Musk also sold 19.5 million Tesla shares for $3.95 billion on Nov. 4, 7 and 8. His decision to sell some Tesla shares came just days after Musk completed a $44 billion purchase of Twitter.

Last week, Musk testified in a Delaware court to defend himself in a shareholder lawsuit.

While testifying, Musk said he hopes to “reduce my time at Twitter and find someone else to run Twitter over time,” according to news reports.

DWAC stock soars

Truth Social launched after Twitter closed Trump’s account following the January 6 riots at the US Capitol. Some industry observers have suggested that a return to Twitter could redirect a large portion of Truth Social’s audience to a more mainstream channel.

DWAC stock is down about 87% from October 22, 2021, peaking at 175, marked shortly after news of the Trump merger deal broke.

Please follow Kit Norton on Twitter @KitNorton for more insurance.

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