Digital World Acquisition Corp Stock News and Forecast: DWAC surges 20% despite high inflation print
- DWAC stock pops as the app now appears in the Google Play store.
- DWAC stock remains volatile as Twitter takeover saga hurts.
- DWAC vote on shareholder approval for taking Truth Social public is delayed.
UPDATE: DWAC advanced a surprising 19.6% in the first hour of trading on Thursday. The spike was due to enthusiasm over Truth Social finally being added to Google's Play Store, a platform for downloading apps on Android devices. Shares are circling around $19.08 at the moment. Earlier in the session, DWAC traded up the whole way to $21.88, the price at which the stock opened on September 20 before proceeding to lose 17% during that session. The Nasdaq has sold off 1.8% along with the rest of the market after US Consumer Price Index (CPI) data arrived for September. Core inflation rose 0.6%, higher than consensus, and has triggered the expectation that the Federal Reserve will hike interest rates even higher and hold them there even longer.
Digital World Acquisition Corp (DWAC) jumped on Wednesday after Google approved its acceptance to the Google Play store. This platform will make it much easier to download DWAC's Truth Social app. DWAC is the SPAC vehicle that is aiming to take President Trump's Truth Social app public. The stock is a volatile one, but overall 2022 has not been a good one for DWAC shareholders. DWAC stock is down 69% in 2022.
Digital World Acquisition Corp (DWAC) stock news
DWAC stock closed higher on Wednesday as the Truth Social app showed up on the Google Play Store. Axios reported on Wednesday that Google had approved Truth Social for distribution on the Play store.
NEW: Google has approved Donald Trump’s Twitter-like social media app Truth Social for distribution in the Google Play Store, Axios has learned. https://t.co/QfqeZFxBWJ
— Axios (@axios) October 12, 2022
DWAC has been under pressure from speculation over Elon Musk's takeover of Twitter (TWTR) going ahead. This would lead to the possibility of President Trump's Twitter ban being overturned. Whether this would actually happen or not is unknown, but speculation has mounted on that front. DWAC is also seeking to get a vote from shareholders passed to extend the deadline it has to complete the deal to take Truth Social public via SPAC.
DWAC stock forecast
This is a volatile and news-driven momentum stock and not suited to technical analysis. $10 is an obvious support as most SPACs are forced to hold $10 in cash to return to shareholders if a deal does not go through.
DWAC stock chart, daily
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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.
