Digital World Acquisition Corp. (DWAC) stock fell early Wednesday after former President Donald Trump announced Tuesday night he will once again seek the Republican nomination as presidential candidate in 2024.
“In order to make America great and glorious again, I am tonight announcing my candidacy for president of the United States,” Trump told supporters during an event at Mar-a-Lago.
DWAC stock fell around 7% Wednesday during market trading. On Tuesday, before Trump said he would run for president, DWAC shares sank 8.8%. The stock had spiked 11% on Monday and is up nearly 52% so far for November.
DWAC is a special purpose acquisition company which aims to take the former president’s tech and social-media platform public in the sort of reverse merger that was popular several years ago. The company reported Monday that it has continued to hemorrhage money. The SPAC said it lost roughly $3.4 million in the latest quarter ending on Sept. 30, according to SEC filings. The group has lost $9.6 million so far in 2022.
DWAC Stock And The Trump Brand
The future of DWAC and its efforts to take Trump Media and Technology Group public are tightly bound up in the value of the Trump brand. Another presidential bid is seen as a big boost for the brand. Trump Media is the parent of the conservative social-media platform Truth Social.
DWAC stock tumbled 20% after last week’s midterm elections as Republicans fell well short of expectations. The performance was read by some as a repudiation of candidates backed by Trump. DWAC stock had surged around 70% earlier in the week on news that Trump would announce his run for president.
Wins Tuesday by Trump-backed Senate candidates J.D. Vance in Ohio and Ted Budd in North Carolina helped boost the Trump brand. But a long list of losses raised questions about Trump’s potentially fading wattage, with Mehmet Oz losing his Senate bid in Pennsylvania, and Trump protege Kari Lake far enough behind in Arizona’s governor’s race that Fox News and the Associated Press called the race for her opponent, Katie Hobbs.
Given the doubts…