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.
The special purpose acquisition company's share price rose 14% yesterday to $83.25, bringing its year-to-date gains to 93%. 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.