🌟🌟🌟Shares of $Digital World Acquisition Corp(DWAC)$ jumped 35% today and in the past 5 days have risen 42% after news broke that DWAC has completed its merger with Trump Media & Technology Group (TMTG). TMTG owns social media platform Truth Social and is backed by former US President Donald Trump.
To me DWAC is the ultimate Trump stock. It is just a SPAC or Special Purpose Acquisition Company and is often referred to as a Blank Cheque company. It does not have any earnings or any revenue at all.
DWAC is a meme stock, high risk and high reward. Even though Donald Trump has secured the Republican Nomination for President, it is still too early to tell whether he will win the US Presidential Elections on November 5 2024.
As such I would prefer to give it a miss as I prefer to invest in quality stocks with solid fundamentals of profitability, rock solid balance sheet and an excellent management team.
There is also a lot of uncertainty surrounding his legal cases. When I am in doubt about a stock such as DWAC, I normally stay clear.
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