Is DWAC stock a buy now?
Why is DWAC stock going up?
Shares of the company connected to Trump media rose sharply after news that the Trump app Truth Social has set a target launch date of Feb. 21. It's a social media service backed by Donald Trump and investors are pouring into Digital World Acquisition stock ahead of the debut.
Truth Social, a platform being touted as an alternative to Twitter, is slated to launch on Presidents Day. Digital World Acquisition's share price has been on a strong upswing ever since the news broke.
Should I buy DWAC stock?
Investors should move forward with the understanding that Truth Social is still roughly a month from launch, and it's likely that the platform has not yet generated any significant revenue.
It's possible that Truth Social will be able to attract a sizable active user base and generate sales from advertising, in-app purchases, and other channels. In an investor presentation the firm estimated it will have 16 million users and 800,000 monetizable users on Truth Social in 2022. It also expects to have 81 million users by 2026.
It's a high-risk investment and will likely continue to see volatile trading in the near term.
Is DWAC a buy right now?
Before investors go picking up shares of DWAC stock, they should do their due diligence. While not quite as volatile as penny stocks, there’s still danger that comes with investing in SPACs. Right now, buying DWAC stock is more akin to gambling than investing. The firm has no earnings history to speak of and they have yet to actually launch a product. So DWAC stock will be able to turn only when the company can turn its hype into earnings performance.
How to buy DWAC stock?
If you’re new to stock market investments, you may be wondering how to start to invest in DWAC. The easiest way to buy DWAC stock is through an online stockbroker. After opening and funding your account, you can buy DWAC stock through the broker's website in a matter of minutes. Some of best brokerage offer fractional shares and commission-free, such as eToro, SoFi Active Investing, Robinhood and Charles Schwab.
