How to buy Truth Social stock
After Twitter (NYSE:TWTR) and Facebook (NASDAQ:FB) banned him, former President Donald Trump has finally made good on his promise to launch his own social media platform, titled Truth Social. It doesn’t stop there, though. The Trump Media & Technology Group, the company under which the platform will operate, has already entered into an agreement to merge with Digital World Acquisition (NASDAQ: DWAC).
Digital World Acquisition Corporation (DWAC) became a publicly-traded company with its Special Purpose Acquisition Company (SPAC) Initial Public Offering (IPO) on the NASDAQ on July 8, 2020.
Wait, what's a SPAC?
Briefly, SPACs are shell companies that get listed on exchanges like the Nasdaq and exist for the sole purpose of eventually merging with companies that want to go public. Someone, often from the finance world, starts the company and gets a few other people to throw money in the pot in exchange for shares of the shell — typically sold at $10 a pop. They set themselves a deadline (usually around two years) by which they aim to find a company to merge with and tell the market which industry they’re targeting — though they can really merge with any willing business. Here’s a far more detailed explainer if you’re curious (click here).
How to invest in Trump Media
You cannot buy stock directly in Truth Social; however, you can purchase stock from Digital World Acquisition Group (NASDAQ: DWAC) due to its merger with Trump Media & Technology.
How do I buy TMTG Stock?
If you want to buy the stock for Trump Media & Technology Group, then I must inform you that the company has not been listed on any stock exchange yet. But they are preparing to launch the stock as soon as possible. The process for getting the company to be traded publicly has been started already and we can expect to buy and sell the shares by February 2022. Meanwhile, you can buy the stock of Digital World Acquisition Corp. (NASDAQ: DWAC).
Buy Digital World Acquisition Group (NASDAQ: DWAC) stock on Etoro now!
eToro is a well-known fintech company and a social trading broker, established in 2007. At eToro, you can trade CFDs and forex, as well as real stocks, ETFs and many cryptos. It has a lot of innovative features, like social trading and copying other (successful) traders. Moreover, you can also access research, analyst ratings, and other key information about DWAC via your account.
There are two types of orders you can place to buy Truth Social (or DWAC) shares: market orders and limit orders. If you place a market order, you’ll buy however many shares of Pfizer stock you wish to purchase at the current market price. If you place a limit order, you’ll set a maximum price per share you are willing to pay.
In addition to buying individual stocks like DWAC, you can invest in bonds, mutual funds, exchange-traded funds, and other investments using eToro trading platform.
Should I buy DWAC stock?
Truth Social is a new social media platform that is being spearheaded by former President Donald Trump. This platform has promised to differentiate itself from other popular social media outlets by devoting itself to offering an “open, free, and honest global conversation without discriminating against political ideology.” With former President of the United States Donald Trump leading the production of this platform, it will have all of the star power, media attention, and funding to allow it to compete with the likes of Facebook, Twitter, Instagram, and even Twitch.
Truth Social is just the start of what the combination wants to achieve in the tech industry. They plan to enter a range of sectors to challenge the supremacy of some of the biggest companies in the world. Trump Media’s long-term plans include creating competitors to Amazon's AWS cloud service, Google Cloud, and online payment service Stripe. However, it will require a much larger cash infusion and other resources to stay abreast with its competition in the long run.
Donald Trump had a whole meme presidency. Given the strength of his online fanbase and the general proliferation of “we like the stock” investing, it seems possible the plan is just to launch the company and have his true believers buy in. In a press release, Orlando said, “Given the total addressable market and President Trump’s large following, we believe the TMTG opportunity has the potential to create significant shareholder value.”
I believe that Trump has enough influence within his conservative base to build a successful platform. While a Trump-based social media or news platform may not have as many users as Twitter and Facebook, it may be able to monetize it better.
Is DWAC stock a Buy Right Now?
The incredible recent performance of DWAC’s stock has caught the attention of investors. At the moment, DWAC has seen nearly 70% year-to-date growth. Meanwhile, VIX has surged 60% YTD, while the S&P 500 has dropped 10% over the same time period. DWAC’s popularity is on the rise among individual investors and within major online discussion forums.
It is still too early to make any judgments on whether the platform will deliver on what it promises. There’s no clarity around the prospects of Truth Social and Trump Media’s other business propositions. Investors should move forward with the understanding that Truth Social has not yet generated any significant revenue. It's a high-risk investment and will likely continue to see volatile trading in the near term. A lot of SPACs stocks have fallen back down to earth and are trading well below the de-SPACing price. Thus, I believe investors should be patient and wait for the de-SPACing process to finish.
Final thought
Just like Undervalued Stocks, this new social media company founded by Donald Trump could be an enormously profitable investment center. However, there is no easy answer as to whether or not buying Truth Social is a smart investment for you. Investing is a personal decision – what is good for you may not be good for another investor and vice versa. Keep in mind that just because Truth Social is doing well now doesn’t mean that you’ll see the returns you are counting on.
If you are interested in investing in Truth Social, the most straightforward way is to buy shares of the company through eToro platform.
Maybe you are interested
Is Truth Social stock a buy right now?
