DWAC Stock Surges 166% This Year Thanks to Hype About Donald Trump

However, the merger between the two companies has faced numerous delays and obstacles over the past few years.
By the end of 2023, DWAC and TMTG appeared to be making progress toward the merger once again. An agreement was reached to extend the time for mutual due diligence, with an updated registration statement expected shortly.
However, as of March 2024, the merger has yet to occur. However, in early February, the Securities and Exchange Commission (SEC) announced that the registration of the merger was effective, signaling a potential green light for the SPAC merger to proceed.
Consequently, DWAC shareholders are expected to vote on the potential approval of the merger on March 22.
If DWAC shareholders approve the merger, Trump's 90% stake in TMTG could be valued at around $1.6 billion, based on DWAC's current market cap.

DWAC shares have already risen 163% in the first three months of 2024. In the last 12 months, the stock has gained 215%.

However, this super-bullish movement is attributed not to the fundamentals behind TMTG, but rather to speculation surrounding the merger and the involvement of Donald Trump in the U.S. political scene during the election year.
Since the launch of Truth Social, subscriber numbers and usage have been minimal, making it challenging to assess TMTG's performance accurately. TMTG's initial projection for 2023 was 41 million users, with 25% being monetized and an average revenue per user (ARPU) of $8.90.
However, these targets were clearly not achieved. In the first half of 2023, TMTG generated only $2.3 million in revenue with an operating loss of $7.6 million. Despite this, these numbers represent an improvement from the full-year 2022 results, which showed $1.4 million in revenue and an operating loss of $23.3 million.
In mid-January, shares jumped 29% following the former president's victory in the Iowa caucus, and they have continued to rise since then, skyrocketing another 88% to $49.69 after DeSantis quit the primary race.
Mid-February saw the SEC's merger clearance maintaining momentum around the stock at the $50 level. More recently, shares jumped again after a brief correction of the rally preceding Trump Media being sued by co-founders ahead of the merger.

However, this was offset by news of the Supreme Court's decision preventing Colorado from removing Trump from the state's primary ballot, which also impacted market dynamics.

Does It Make Sense to Buy DWAC Shares?
The investment thesis for DWAC relies primarily on speculation regarding former President Trump's activities, and secondarily, on the anticipated merger with Trump Media, which has been the subject of speculation for almost two years.
The current moment is highly conducive to speculation. DWAC has never been closer to merging with TMTG, and Donald Trump's name is gaining momentum ahead of the election.

Furthermore, with polls also suggesting a high level of dissatisfaction with the Biden administration, Trump stands a strong chance in the upcoming presidential race. This likelihood is expected to influence the sentiment of DWAC investors and attract the attention of traders seeking to capitalize on potential volatility.