Special purpose acquisition company Digital World Acquisition Corp. DWAC shares were sliding over 3% in premarket trading on Monday.
What Happened: The downside can be traced back to investor concerns about the fate of Truth Social, a platform owned by Trump Media & Technology Group, or TMTG, with which Digital World has negotiated a merger deal.
Last week, Twitter CEO Elon Musk ran a poll to decide whether former U.S. President Donald Trump should be reinstated on the platform. The poll results have favored a Trump return.
See Also: Best Technology Stocks Right Now
The former president was permanently suspended from Twitter in January 2020 following the Capitol Hill riots. Trump, then, announced his own platform — Truth Social — and launched it in March 2022.
Trump has ruled out his return to Twitter. Investors, however, are likely to be concerned that if the ex-president has a change of heart and embraces Twitter, the fate of Truth Social would hang in limbo and, in turn, that of Digital World.
Price Action: In premarket trading on Monday, Digital World shares were down 3.09% at $20.72, according to Benzinga Pro data.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
