One of the hottest listings in the stock market today is a Special Purpose Acquisition Company. Digital World Acquisition Corp. (NASDAQ:DWAC) has taken the market by storm thanks to massive attention from former US President Donald Trump.
Everything from penny stocks to blue chips is surging in sympathy with the move. Namely, social media, broader tech, and anything to do with the Trump campaign are on the radar. Today we’re taking a look at some of these. But what’s going on with DWAC stock that the entire market is paying attention to?
Trump’s DWAC SPAC Attack & A 633% Rally (So Far)
Yesterday we saw the rise of the newest and hottest SPAC, DWAC captivate retail traders’ attention. The proposed new home of a brand new social media platform, TRUTH Social, is one part of the plan for Trump Media Company. Originally valued at an enterprise value of just $875 million, former President Trump’s newest endeavor has seen a massive jump in valuation.
Just to give you some idea, DWAC began trading at $12.73 on Thursday, October 21. It then ran as high as $52 during the regular session, but during Friday’s (Oct. 22) premarket trading hours, DWAC reached highs of over $93 by 8:30 AM ET. That’s a move of 633% in less than 24 hours. This massive spike has brought about ripple effects in different areas of the stock market today.
Former US President Donald Trump said earlier this month that, “I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech. We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced.”
Hot Penny Stocks To Buy [or avoid]
In an article earlier this week, sympathy sentiment was a topic of discussion (See: 4 Hot Penny Stocks To Watch After The 1,282% HX Stock Rally). This relates to the idea that companies with similar traits may benefit when other companies or industries have significant events. In this case, Trump’s stock, DWAC, and the breakout has become critical. So, should you trade DWAC stock itself, the sympathy movers, or avoid everything entirely? Here are a few early movers, thanks to DWAC sympathy and speculation.
Trump Related Penny Stocks To Buy [or avoid] 1. Phunware Inc. (NASDAQ:PHUN)
Phunware has been a relatively quiet penny stock over the last few months. We’ve reported on it plenty of times for its sporadic breakouts, thanks to key developments. Phunware is a tech penny stock focused on a multiscreen-as-a-service or MaaS platform. It offers software allowing companies to monetize, engage, and manage mobile applications.
Phunware also provides software development kits, location-based services, and more. There’s even a cryptocurrency spin to this penny stock as it offers PhunCoin and PhunToken, allowing holders to use it as a loyalty rewards platform. Consumers can engage with Phunware brands & partners and gain rewards to essentially monetize digital activity with brands.
Where does DWAC or the Trump tie come from? Something that has come up this week is old headlines. In Phunware’s case, news from 2020 helped re-spark interest in the penny stock. Specifically, reported a partnership with American Made Media Consultants on the development, launch, and ongoing management of the Trump-Pence 2020 Reelection Campaign’s mobile application portfolio for Apple iOS and Google Android smartphones. Thanks to this tie-in, PHUN has become one of the newly labeled “Trump stocks” to watch right now.
It’s also worth mentioning that Phunware also has warrants (NASDAQ:PHUNW). Overnight, these have exploded in price from a close of around 50 cents on Thursday to premarket highs of $8.89 on Friday, a 1,643% move.
2. Salem Media Group Inc. (NASDAQ: SALM)
Salem Media is another company that could be moving in sympathy with DWAC stock this week. The company specializes in digital and radio commentary. In particular, it’s a conservative news outlet with two main brands, Salem Christian Media and Salem Conservative Media.
According to the company’s website, it boasts 11 million radio listeners, 153 million monthly web and app sessions, and a database of 40 million active email addresses. The company gained attention during the 2020 election season with a focus on amplifying the conservative voice.
How could DWAC or former President Donald Trump tie into this storyboard? One of Salem’s former network hosts, Dr. Sebastian Gorka, was appointed to President Trump’s National Security Education Board. With this has come a tidal wave of bullishness thanks to the massive uptick in trading momentum boosting DWAC stock.
3. Grom Social Enterprises (NASDAQ:GROM)
Instead, traders are searching for companies that are stand-alone alternatives. Grom Social is a platform and content provided for children. It has designed a social media app exclusively for kids under 13. Obviously, there are countless security measures being taken in light of the application’s demographic.
This week, Grom announced that it added several new in-app safety features that give parents of Grom’s users complete control over their children’s personal identifiable information (PII). It also offers a greater ability to monitor activity while posting, sharing, and chatting with others on the app. These controls were only previously available in the company’s parental companion app.
4. IZEA Worldwide Inc. (NASDAQ:IZEA)
Similar to GROM, IZEA stock caught some sympathy momentum early on October 22. The company specializes in technology, allowing for enhanced influencer marketing, content creation, and collaboration. Its technology will enable users to monetize their content through an influencer marketing platform, which has facilitated nearly 4 million transactions between buyers and sellers, according to the company.
Last month, it inked a deal with DatChat (NASDAQ:DATS), a privacy-focused social media and chat platform, to execute a celebrity influencer online dating campaign specific to DatChat’s messenger app. While IZEA stock may not have direct ties to DWAC or the former president, sympathy sentiment stemming from the idea of privacy and free speech have driven momentum. In this case, DATS stock has caught a surge thanks to interest from the TRUTH Social strategy. Could IZEA’s ties have triggered speculative bullishness thanks to DWAC stock?
Penny Stocks Surge On Friday
Keep in mind that many of these stocks have jumped thanks to speculative trading activity. While there’ve been a few with new updates, the irregular trading activity is apparent. With this in mind, understand that volatility can become a significant factor right now, and knowing how to handle that will be important.