DWAC Stock Plunges Nearly 14% After Shareholders Approve Trump Social Media Merger

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The anticipated merger between Digital World Acquisition Corp. (DWAC) and the social media entity owned by former President Donald Trump stirred significant market turbulence, as evidenced by DWAC stock’s substantial decline. Initially opening at $44.20 per share, DWAC experienced a precipitous drop, closing at $36.94 per share, marking a notable decrease of $5.87, or 13.71%. This downturn ensued promptly following the approval of the merger by DWAC’s shareholders.

Market Response And Future Prospects For DWAC

The stark reaction in DWAC’s stock price underscores investors’ apprehensions and uncertainties surrounding the merger. The impending formation of Trump Media, poised to commence trading with the new ticker symbol DJT, awaits realization. Notably, Trump, holding a majority stake in the merged entity, potentially valued at $3 billion or more, could see a significant impact on his holdings should DWAC fail to rebound to its initial opening price.

The market sentiment towards DWAC is further accentuated by the significant short interest, with 11% of tradable shares being sold short, as per FactSet data. This indicates a substantial portion of investors betting on further price declines, indicative of lingering skepticism regarding DWAC’s future trajectory post-merger approval.

Amidst the volatility, the performance of DWAC following the merger remains pivotal, as it will directly influence the valuation of Trump’s shares in the newly formed Trump Media. Consequently, investors keenly await developments in the coming trading sessions to gauge the trajectory of DWAC and its implications for the broader market landscape.