- The merger of SPAC Digital World Acquisition Corp. and Trump Media & Technology Group has been well-received by investors — until recently.
- Shares are selling off amid a more nervous market and given concerns about early execution and valuation, the decline in DWAC stock makes some sense.
- Given an enterprise value still above $14 billion and very real questions about TMTG's long-term viability, more selling can continue.
- There's no doubt a business opportunity of some size here, but, of late, the market has reminded investors that valuation matters. It's difficult to see Digital World stock avoiding that lesson.
For further details see:
Is DWAC Stock A Buy Or Sell After Truth Social Launch? It's Certainly Not A Buy