Trump’s media SPAC hit a nerve among retail investors.
Digital World Acquisition Corp (DWAC) jumped more than 900% in two days as trading was halted multiple times due to high volatility.
DWAC was trading at $9.96 on Wednesday, before surging 350% to $35.54 on Thursday. During Friday’s trading, the stock reached $175.
Retail investors are fuelling demand for the company and talking it up on social media. Seeking Alpha has called it a “meme stock of a lifetime”.
The share price has since corrected to $100.
Trump launched the special acquisition company to list his Trump Media & Technology Group (TMTG) through a reverse merger with DWAC.
The deal valued TMTG at up to $1.7 billion. The surge in retail investor interest means that the company is likely going to be worth much more.
On Thursday, Trump announced the launch of his own media empire, complete with a social media platform TRUTH Social.
TRUTH Social will try to take on social media giants Twitter and Facebook, both of which have banned Trump from posting on their sites.
Shares of Facebook and Twitter traded down on Friday, due to a disappointing earnings report by tech giant Snap.
It’s too early to tell if Trump’s social media project will succeed. Alternative social media sites Parler and Gettr have faced serious technical issues in the past.