Investors saw several highly speculative investments go to the moon in early 2021, only to crash back to earth over the past several months. Some of these players were pre-revenue and unprofitable companies going public via special purpose acquisition companies (SPACs ).
Former President Donald Trump is starting a social media network and streaming service called Truth Social and TMTG+, respectively, taking the companies public under Trump Media & Technology Group in a SPAC merger with Digital World Acquisition (NASDAQ: DWAC) . Investors are gobbling up shares, so here is what you need to know before buying the stock.
Trump's headbutting with large media companies has been well-publicized, including his banishment from social media platforms like Twitter and Facebook (owned by Meta Platforms ). I think Trump's logic behind this business venture is simple: If tech companies take his social platforms away, he'll start his own.
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Beware: This SPAC Bubble Stock Could Burst in 2022