Digital World Acquisition Corp Stock News and Forecast: DWAC retreats as two key executives leave

DWAC stock falls just under 10% on Monday.
Digital World Acquisition Corp is taking Truth Social public via SPAC deal.
Donald Trump's media SPAC has performed poorly losing 40% in the last month.

Ivan Brian FXStreet

DWAC is the Special Purpose Acquisition Vehicle (SPAC) that is due to take former US President Donald Trump's Trump Media & Technology Group (TMTG) public scheduled for some time this year. TMTG owns the Truth Social media platform. Social media platforms were perhaps put in play on Monday when news broke of Tesla (TSLA) boss Elon Musk buying a 9.2% stake in Twitter (TWTR). TWTR stock rallied sharply on the news and ended Monday up a whopping 27%. Other social media sites, notably Facebook Meta (FB) also saw strong gains on Monday, all of which helped the Nasdaq power higher.

Digital World Acquisition Corp (DWAC) Stock News: Two key executives leave

Reuters broke the story on Monday that Josh Adams and Billy Boozer have left the company. Josh Adams was the Chief Technology Officer while Billy Boozer was Head of Product Development of TMTG.

The launch of the Truth Social app in February of this year has not exactly gone smoothly. The app had a few technical glitches and led to CEO Devin Nunes saying the problems would be resolved by the end of March. So far, though, nothing appears to have improved and user visits have fallen sharply according to several reports. This has led to a 40% fall for DWAC stock in the last month.

It is worth pointing out though that DWAC is still up nearly 500% over the past 12 months. The stock rocketed from $12 to $175 in late October when news of the SPAC deal broke, but recent delays in filing documents have unnerved DWAC stock investors.

DWAC filed a Notification of Late Filing on March 31 "The Registrant is unable to file its Form 10-K for the year ended December 31, 2021, within the prescribed period without unreasonable effort or expense because the Registrant’s independent registered public accounting firm is in the process of completing the audit of the financial statements for the period ended December 31, 2021, and will need additional time to complete its audit".

So far, former President Trump has not been particularly active on the platform but he may be waiting until all the various issues are fully sorted before partaking.

Digital World Acquisition Corp (DWAC) Stock Forecast: Support at $50

The move on Monday broke support at $60 and now DWAC stock is headed for the consolidation zone from back in December. This is located from $50 to $52. Just below, at $47, the point of control or price with the highest volume is found. So these areas are key support zones. However, DWAC stock is more driven by newsflow than technicals.

DWAC stock chart, daily

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD struggles for direction amid USD gains

EUR/USD is trimming part of its earlier gains, coming under some mild downside pressure near 1.1730 as the US Dollar edges higher. Markets are still digesting the Fed’s latest rate decision, while also looking ahead to more commentary from Fed officials in the sessions ahead.

GBP/USD drops to daily lows near 1.3360

Disappointing UK data weighed on the Sterling towards the end of the week, triggering a pullback in GBP/USD to fresh daily lows near 1.3360. Looking ahead, the next key event across the Channel is the BoE meeting on December 18.

Gold losses momentum, challenges $4,300

Gold now gives away some gains and disputes the key $4,300 zone per troy ounce following earlier multi-week highs. The move is being driven by expectations that the Fed will deliver further rate cuts next year, with the yellow metal climbing despite a firmer Greenback and rising US Treasury yields across the board.

Litecoin Price Forecast: LTC struggles to extend gains, bullish bets at risk

Litecoin (LTC) price steadies above $80 at press time on Friday, following a reversal from the $87 resistance level on Wednesday. Derivatives data suggests a bullish positional buildup while the LTC futures Open Interest declines, flashing a long squeeze risk.

Big week ends with big doubts

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

Aave Price Forecast: AAVE primed for breakout as bullish signals strengthen

Aave (AAVE) price is trading above $204 at the time of writing on Friday and approaching the upper boundary of its descending parallel channel; a breakout from this structure would favor the bulls.