Dear DWAC Stock fans, mark your calendars for February 21st

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Actions of Acquisition of the digital world (NASDAQ:DWAC) the stock rose 26% yesterday following the announcement of the launch of the planned social media app, backed by former President Donald Trump, on February 21.

Source: Joseph Sohm / Shutterstock.com

The social media application, called Social Truth, is now available for pre-order in select app stores. It appears the team behind Trump chose Presidents Day on February 21 for the official launch. Digital World Acquisition, which is a specialist acquisition company (SPAC), saw its share jump by more than 25% when the launch was announced.

What happened to the DWAC stock

Truth Social is presented as an alternative to established social media companies Twitter (NYSE:TWTR) and Meta-platforms (NASDAQ:FB), who both banned Trump on the grounds that he helped to incite the January 6, 2021 riot at the United States Capitol. The launch date for Truth Social was made public yesterday on the occasion of the first anniversary of these events.

Acquisition of the digital world and Trump Media & Technology Group announced last October its intention to conduct a reverse merger that will bring Trump Media to the public market. This news took DWAC’s stock from $ 10 to $ 175. However, the stock price has since returned to its current level of $ 60.27. In December, investors learned that DWAC is under investigation by the United States Securities and Exchange Commission (SEC) regarding stock transactions and communications with Trump’s company prior to the PSPC announcement.

Why is this important

Many on Wall Street consider Social Truth to be essential if Trump runs for re-election in 2024. While he has not confirmed his intention to run, many believe the former president is the front-runner to become the country’s candidate. Republican Party during the next presidential campaign.

News that a launch date has been set for the Truth Social app is good news for Digital World Acquisition and brings the planned reverse merger closer to completion. A date for the planned merger that will make Trump Media public has not been set, but it is expected to happen this year ahead of the midterm congressional elections that will take place this fall.

What’s next for the digital world

While the DWAC stock is walk higher, stocks are unlikely to take off and hold onto gains until the Truth Social app officially launches and the PSPC deal that will see Trump Media start trading on the stock exchange occurs. Until then, the PSPC action should continue to evolve erratically. Investors who want to back the former president or think Trump Media stock is a good investment may want to wait for these two key events to actually happen before taking a position.

At the date of publication, Joël Baglole had (neither directly nor indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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