Keep an eye on Digital World Acquisition Corp. (DWAC).
The SPAC stock has been moving aggressively higher, as we near the February 21 launch of Donald Trump’s planned social media app. From a current price of $71, anticipation of launch could potentially send this stock even higher. However, at the same time, be mindful of a potential “sell the news” reaction on the day of the actual launch.
The app – called Truth Social – is being marketed as an alternative to current social media.
DWAC is more of a quick-momentum idea. Be cautious if you buy in.
Also, if you’re unfamiliar with what a SPAC is, Investopedia does a good job explaining: “A special purpose acquisition company (SPAC) is a company that has no commercial operations and is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring or merging with an existing company. Also known as “blank check companies,” SPACs have been around for decades, but their popularity has soared in recent years. In 2020, 247 SPACs were created with $80 billion invested, and in just the first quarter of 2021, a record $96 billion1 was raised from 295 newly formed SPACs. By comparison, only two SPACs came to market in 2010.” Read the full article on SPACs.