Trump-linked SPAC stock DWAC suffers huge decline on former president’s social media plans

Trump Social
Source: rump Media & Technology Group (TMTG)

The stock price of Digital World Acquisition Corp. (NASDAQ: DWAC) special purpose acquisition company (SPAC) linked to former President Donald Trump suffered a significant decline on Tuesday.

DWAC shares closed at $59.07 each, down by 29.56%. The stock declined by more than 6% to $55.34 per share after-hours, around 6:50 PM EDT.

Trump-linked SPAC stock DWAC suffers huge decline
Source: Google Finance

Last week, DWAC announced that it would merge with Trump Media & Technology Group (TMTG), which would become a publicly-listed company.

DWAC skyrocketed to $94.20 each on Friday. It was one of the most popular tickers on Reddit’s WallStreetBets chatroom. It seemed that the SPAC became a “meme” stock.

On Monday, short-seller Iceberg Research announced that it is betting against DWAC citing the reason that Trump is the biggest beneficiary of the combined company. It only sees “risk for investors in the near future”

Iceberg Research’s tweet caused DWAC to drop 11% on Monday. The SPAC stock continues to plummet on Tuesday. It appears that investors are also reacting negatively to the former president’s plans for his new social media company.

Trump says his social media platform will challenge big tech censorship

An hour before the trading started on Tuesday, Trump released a statement regarding his new social media platform Truth Social. According to him, his social media platform will “take on Big Tech censorship.”