Should You Buy DWAC Stock?
DWAC plans to acquire SaaS and Technology or Fintech and Financial Services companies with enterprise value ranging from $400 million – $2 billion. The company is set to merge with former President Donald Trump’s Trump Media & Technology Group Corp. (TMTG). DWAC has been the most active SPAC after it announced a merger with former President Donald Trump’s TMTG.
The new company will trade on the Nasdaq under the symbol TMTG. As with all SPACs, we won’t be seeing DWAC stock after the merger.
Should you invest in a special purpose acquisition company (SPAC)?
The first thing to note about DWAC is that it’s a special purpose acquisition company (SPAC). They are companies formed with the express purpose of acquiring or merging with other companies. Many investors willingly buy in having no idea that investing in a SPAC is quite different from buying a normal stock. When you buy stock in a company like Apple, you know the company’s financials, its products, and its track record. You can perform a reasoned financial analysis. For a SPAC like DWAC, that’s not always possible. It’s true to say: “When you buy Apple stock, you’re buying a business; when you buy DWAC, you’re buying an idea.”
However, DWAC is a little different from the usual SPAC. The Truth Social media platform has a good chance to become an overnight success, not only for former president Donald Trump but also investors considering DWAC. This is because he attracts so much attention, and that’s what everyone wants these days. When building your next social network, it’s important to know how many people will use the product. Consequently, this all will have an impact on DWAC stock in the runup to the merger’s completion.
Should you buy DWAC stock before the Trump Media merger?
Retail investors on online platforms such as Stocktwits look excited about the prospects of DWAC taking Trump Media public. If everything works out, Trump’s network may exceed expectations and grow faster than expected. At this point, perhaps the best way to look at DWAC stock is as a short-term investment. Investors should wait to buy DWAC stock until more financial details of Trump Media are released, especially considering the deal doesn’t include PIPE (private investment in public equity).
How to invest in Trump Media?
Once the merger deal is complete, you can buy Trump Media shares through any online or traditional broker. If you want to invest right now, you can buy the DWAC stock, which trades on the Nasdaq. On a personal basis, I use eToro, an international broker with very low fees and extreme reliability. The broker has more than 20 million users in 140 countries worldwide — and the U.S. is now on that list.
Final thought
Since Trump began running for president in 2015, many believe the media and government have relentlessly targeted him for punishment and retribution. What’s more, Silicon Valley earlier this year effectively destroyed Parler, the only social network that had gained a significant following among conservatives. So there’s every reason to believe that Truth Social will have many, very powerful enemies looking to derail it. As a result, DWAC stock pose a significant amount of risk. Consequently, I urge risk-tolerant investors to buy a relatively small portion of the shares at this point.
