Technology
Saturday, March 23rd, 2024 1:21 am EDT
Key Points
- Shares of Digital World Acquisition Corp. (DWAC) plunged nearly 14% after shareholders approved a merger with a social media company owned by former President Donald Trump.
- DWAC opened the trading day at $44.20 per share but experienced a rapid decline following the vote.
- The market closed with DWAC shares selling for $36.94 each, marking a significant drop of $5.87 or 13.71%.
Shares of Digital World Acquisition Corp. (DWAC) experienced a tumultuous day of trading as shareholders approved a merger with a social media company owned by former President Donald Trump. The day began optimistically with DWAC opening at $44.20 per share, but swiftly turned sour as the price plummeted following the vote, closing at $36.94 per share, marking a significant drop of $5.87 or 13.71%. The merged entity, Trump Media, is poised to start trading under the new ticker symbol DJT in the coming week. Trump himself holds a majority of shares in the new company, potentially valued at over $3 billion based on DWAC’s opening price. However, the actual value of these shares hinges on whether the stock can rebound to its initial price. Complicating matters, 11% of DWAC’s tradable shares are being sold short, indicating investors’ pessimistic outlook on the stock’s future performance. Short sellers are banking on the share price to decrease further, allowing them to buy back shares at a lower price before returning them to their lenders. This volatility underscores the uncertainty surrounding the success of Trump’s foray into social media and the market’s reaction to the merger.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/22/trump-social-dwac-stock-falls-after-merger-approved.html
