SPAC Digital World Acquisition ( NASDAQ: DWAC ), which is taking Donald Trump's social media company and Truth Social app public, fell 16% after the former president announced his 2024 re-election campaign on Tuesday night.
DWAC shares skyrocketed 66% last Monday after Trump hinted at rallies over the previous weekend that he would soon be announcing his re-election campaign. Shares of the SPAC retreated 20% last Wednesday after the potential "Red Wave" that some had forecast failed to materialize after the mid-term elections.
DWAC's re-election announcement seemed to be met with an underwhelming response as conservatively-leaning New York Post ran a headline at the bottom its front page "Florida Man Makes Announcement." Republican mega-donor and Blackstone ( BX ) CEO Stephen Schwarzman also said on Wednesday that he wouldn't support Trump in his re-election efforts, according to media reports.
Digital World shares have plunged 78% this year from reaching highs in early March as the social media company has been involved in regulatory probes and amid potential competition from a Twitter run by Elon Musk, who has previously said he would allow Trump back on the platform.
Phunware ( PHUN ), the company that was hired by Trump's 2020 campaign to create a smartphone application, fell 10% on Wednesday after it surged 38% last Monday on the Trump re-election speculation.
Shares of Rumble ( RUM ), which some describe as the conservative version of YouTube and which aired Trump's re-election announcement from Mar-a-Lago, fell 7.2%.
Earlier this month DWAC again adjourned a holder vote on an extension for its deal to take Trump's social media company public as it works to get more holder votes. The meeting was adjourned until Nov. 22.
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SPAC Digital World drops after Trump announces re-election campaign