Shares of Digital World Acquisition Corp. (NASDAQ:DWAC), colloquially known as the Trump SPAC, surged nearly 10% in the pre-market session today. This comes after former U.S. President Donald Trump advanced towards a Republican presidential nomination with a thumping victory in the 2024 Iowa Republican Caucuses.
The win moves Trump a step closer to a potential rematch with current U.S. President Joe Biden in the November 2024 presidential election. His second stint at the White House could usher in substantial changes surrounding domestic and international U.S. policies. For Digital World, today’s price gains come on top of a nearly 33% jump over the past six months. Still, the SPAC remains far below the $97 levels last seen in March 2022.
Last month, DWAC and Trump Media & Technology Group (TMTG) advanced towards consummating their business combination by filing an amendment to their Form S-4 registration statement. The merger is expected to be completed in the first quarter of 2024.
What is the Forecast for DWAC Stock?
While analyst coverage on Digital World remains scant at present, one could expect more upward movement in the stock if Trump continues to advance in the lead-up to the November 2024 election. However, a beta of 1.34 implies DWAC stock can be prone to wild gyrations compared to broader equity indices and investor caution me be warranted.
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