Editor’s note: This article was updated on Feb. 4 to correct the year-to-date gains in DWAC stock.
Shares of Digital World Acquisition (NASDAQ:DWAC) continue to jump higher as the Feb. 21 launch date for former President Donald Trump’s Truth Social platform draws near.
Source: Joseph Sohm / Shutterstock.com
The special purpose acquisition company’s share price rose 14% yesterday to $83.25, bringing its year-to-date gains to 56%. DWAC stock is one of the few securities that rose significantly through January when markets sold off sharply. Why?
The gains seem to be driven by excitement over the upcoming launch of Truth Social, which is expected to appear on Feb. 21.
What Happened With DWAC Stock
Having been banned from Twitter (NYSE:TWTR) and other social media platforms, Trump is now launching his own platform. Truth Social is part of Trump’s broader media entity, Trump Media and Technology Group.
Industry experts anticipate that Truth Social will operate very much like Twitter. A profile page shown in the App Store appears to be almost identical, featuring icons and retweet features. Digital World Acquisition is taking the Trump Media and Technology Group public via a reverse merger that’s expected later this year.
Why It Matters
The launch of Truth Social comes ahead of Trump’s expected run to reclaim the Oval Office in the 2024 presidential election. With no access to Twitter or mainstream social media outlets, Trump and his team are taking matters into their own hands. The result is the development of their own social media app to communicate directly to supporters.
The sharp run up in DWAC stock earlier this week shows that expectations are high for the launch of Truth Social . Meeting the upcoming Feb. 21 launch date will be key to keeping DWAC stock’s price elevated and to keeping Trump’s followers engaged. Should Truth Social miss its launch date, Digital World Acquisition’s price could fall.
What’s Next for Digital World
A sizable number of Americans continue to support Trump and are behind his new social media app. And this excitement is reflected in the fact that DWAC stock has been one of the best performing so far in 2022. However, that excitement and the share price could evaporate if the Feb. 21 launch date of Truth Social comes and goes without the social media app becoming a reality. Investors should proceed carefully.
On the date of publication, Joel Baglole 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.
More From InvestorPlace
The post DWAC Stock Heats Up as Tentative Truth Social Launch Date Draws Near appeared first on InvestorPlace.