What happened
Special purpose acquisition company Digital World Acquisition (DWAC) was a special stock on Monday. Its price jumped by nearly 11% on the day, thanks to a pronouncement from the most high-profile figure connected with the company.
So what
Digital World Acquisition is the SPAC that aims to merge with Trump Media & Technology Group. As the latter's name implies, this is essentially former president Donald Trump's venture in social media. Trump Media is anchored by the conservative-leaning site Truth Social.
What got investors excited was a Monday morning "truth," (i.e., posting on the site) from Trump. This read, in its entirety, "Hopefully, tomorrow will turn out to be one of the most important days in the history of our country!"
Understandably, this was taken to mean that Trump will announce his candidacy for president in 2024. This is expected, as he's hinted numerous times that he will throw his hat in the ring again; nevertheless, it gave Digital World Acquisition stock quite the jolt.
Now what
If the ex-president indeed announces a run, at a stroke it will give Truth Social a much higher profile and ultimately vault it well higher if he ends up winning his party's nomination.
Trump, however, is seen by many political pundits as a poor prospect to return to the White House in 2024. Many of the candidates he backed for office in the latest election cycle lost their races, and he remains under a heavy legal cloud for numerous alleged transgressions.
Considering that, Digital World Acquisition -- which has had its stumbles in the pursuit of the Trump Media merger -- has to be considered a speculative investment just now. And given Trump's mounting problems and fading potential, a long-shot one at that.
