Digital World Acquisition Corp. stock shot up almost 70% Monday as the special purpose acquisition company — aiming to take former President Donald Trump's tech and social-media platform public — seems to be getting a boost from news Trump will announce another run for the White House this month.
DWAC stock skyrocketed 66.5% to 29.10 during Monday's market trading. On Friday, shares closed at 17.48, up 7%, as news broke that Trump was planning to announce a bid for the White House sometime in November.
The big move from DWAC stock Monday also comes just a day before midterm elections. Republicans are expected to take the U.S. House of Representatives while the U.S. Senate is a tossup.
The Wall Street Journal reported Friday that Trump is preparing to announce a presidential bid by the end of November. DWAC shares shot up late last week after the SPAC delayed a shareholder vote — for the sixth time — on whether to approve a year extension to complete its merger with Trump Media and Technology Group. Trump Media is the parent of the conservative social-media platform Truth Social.
The shareholders meeting is now set for Nov. 22. DWAC's deadline to complete its merger with Trump's company had originally been in early September. However, the SPAC has claimed a Securities and Exchange Commission investigation of the deal delayed the proceedings.
Musk's Twitter And DWAC Stock
DWAC stock advanced Monday after a hectic first week at Twitter with Tesla chief Elon Musk now officially in charge.
Musk started his time heading up the social media platform with mass layoffs, cutting around 50% of the company's work force. He also rolled out a $7.99 monthly fee which includes blue check verification and other social media perks.
Musk has been signaling that people who have been banned from the social media platform, including Trump, may be reinstated. This could be a deathblow to Truth Social, but Trump has said he plans to remain on his platform.
"I am staying on Truth. I like it better, I like the way it works, I like Elon, but I'm staying on Truth," Trump told Fox News Digital in late October.
Truth Social launched after Twitter shut down Trump's account following the Jan. 6 riot at the U.S. Capitol. Some industry observers contend that a return to Twitter could redirect a large portion of Truth Social's audience to the more mainstream channel.
DWAC stock is down 90% from its Oct. 22, 2021, high of 175, marked just after news of the Trump merger deal first broke.
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