Digital World Acquisition Corporation, which is the blank-check organization that is backing former President Donald J. Trump’s new social media platform, Truth Social, recently enjoyed a 14 percent appreciation in its shares on Tuesday. Since its debut last weekend, Truth Social has soared to the top of applications in Apple’s App store.
Specifically, the app has been downloaded approximately 170,000 times since its inception, per research data from Apptopia.
Provided the app maintains market traction, its launch could shepherd in a new era of the 45th president’s return to social media after he was banned from Google, Facebook, and Twitter Inc. after the events of January 6 at Capitol Hill.
Since the debut of Truth Social, the shares of Digital World jumped up to $96.35, a level that has not been witnessed since October. The increase in share price emerged just days after the blank check firm declared that it would list Trump Media & Technology Group, which is the specific venture underlying Truth Social.
In addition, the stock also began trending favorably on stockwits.com, which is a popular platform for retail investors.
“It’s driven by hype,” Dennis Dick remarked, “but I’m skeptical that the retail driven frenzy can be sustained.”
Dick, who serves as a trader at Bright Trading LLC in Las Vegas, noted that “it’s too early to tell” from a fundamental perspective how long Trump’s social media platform will remain trending.
“Trump has a huge following and they could move from traditional social media to this platform,” Dick continued, “but it depends on how good the app is.”
In the earliest days of the app’s release, new users faced several issues, including being placed on a waitlist due to “massive demand” for the app shortly after its launch. It remains unclear if the issues have been fully resolved.
In light of the appreciated value of Digital World, other stocks related to Trump also began to increase, including Phunware, which was hired by the Trump campaign team in 2020. The company saw its shares increase by 11 percent, alongside SPAC CF Acquisition Corp V, a backer of free speech platform Rumble, which also saw its shares appreciate by 3.3 percent.