Anonymous ID: 1534b7 Oct. 21, 2021, 2:38 p.m. No.14829178   🗄️.is 🔗kun

>>14828992

 

Trump's new social media deal sparks 400% surge in SPAC's shares

 

SPACs such as Digital World use money raised through an initial public offering to take a private company public. The deal announcement lacked the trappings of the detailed business plans Wall Street is accustomed to in SPAC mergers, from naming a leadership team to giving detailed financing earnings and projections.

 

Even so, shares of Miami-based Digital World were up 340% at $44.20 a share in afternoon trading on Nasdaq after rising more than 400% earlier in the session. At that price, its market capitalization stood at $1.4 billion, up from $321 million on Wednesday.

 

It was the most actively traded stock on the exchange, with more than 411 million shares changing hands and drawing chatter on forums such as Reddit, where retail investors have driven so-called meme stocks to values not supported by mainstream financial analysis. On Twitter and Stocktwits, some users cheered the rally with posts displaying rocket ships and GIFs of Trump.

 

Some investors said the market reaction reflected support for Trump as well as a bet that a platform with him would draw followers.

 

"Up to this point there hasn't been a publicly traded vehicle for those that support the former president," said Jake Dollarhide, co-founder of Longbow Asset Management in Tulsa, Oklahoma.

 

https://www.reuters.com/technology/trump-strikes-spac-deal-new-social-media-platform-shares-soar-2021-10-21/