On Monday, DWAC jumped 24% and helped lift other Trump-linked stocks as investors anticipate a likely 2024 presidential run.
Trump-linked stocks recently rallied amid speculation that former US President Donald Trump could run for the 2024 presidential election. On Monday, shares of Digital World Acquisition Corp (DWAC) spiked more than 24% to $21.55 to set their best day in approximately a year. The latest jump in value also reduces losses incurred since the beginning of the year to 58%.
The DWAC stock rise comes on the heels of a delay by the SPAC on shareholder vote for the sixth time. The blank-check company set to take Donald Trump’s social media venture public is currently in the middle of deliberations. It is deciding whether to approve the extension to finalize its merger with Trump Media and Technology Group by an additional year.
Speaking on the recent uptick in fortune for DWAC, Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, stated:
“The prospect of Donald Trump seizing the political spotlight again appears to have put a rocket under the share price of DWAC amid expectation there could be a sharp increase in users on the former President’s highly controversial social media platform.”
The DWAC rally also helped pump other Trump-linked companies. For example, conservatives-favored Canadian video platform Rumble Inc climbed 3.4%, while software developer Phunware Inc added 13.3%. Phunware was hired in 2020 by Trump’s presidential reelection campaign to develop a phone app.
Due to the positive developments surrounding Trump-linked stocks on Monday, DWAC became the fifth most trending ticker on Stocktwits. Meanwhile, Trump’s social media platform Truth Social announced plans to join Rumble’s new ad platform as its inaugural publisher in August.
Trump-linked Stocks Fueled by Potential Trump Presidential Bid
Reports state that Trump is preparing another bid for the White House and could make an official announcement sometime this month. During a Republican campaign event in Iowa last week, the outspoken former president reportedly signaled his intention to a crowd of supporters. According to Trump:
“In order to make our country successful, and safe and glorious, I will very, very, very probably [run for president] again.”
His statement comes ahead of the US midterm elections with Republicans set to win the nation’s House of Representatives. Meanwhile, the US Senate hangs in the balance between Republicans and Democrats.
Trump & Elon Musk’s Twitter Development
The rise of Trump-tied stocks also comes a week after Elon Musk officially assumed control of social media giant Twitter. Amid several Twitter changes in varying stages of implementation, the Tesla CEO hinted that he might reinstate banned accounts – including Trump’s. However, Trump recently doubled down on his resolve to remain at Truth Social, saying:
“I am staying on Truth. I like it better, I like the way it works, I like Elon, but I’m staying on Truth.”
The ex-US President launched Truth Social after Twitter shut down his account following the riot at the US Capitol on January 6th.
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