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Trump’s New Media Company Stock Prices Soars, Up 1,400% Over Two Days

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Former President Trump is getting the last laugh after all as shares of the blank-check acquisition company that will publicly list Trump’s new media company went through the roof today continuing yesterday’s momentum.

Digital World Acquisition Corp’s shares nearly doubled to $91 in premarket trading only to skyrocket to $157 before falling to $99. The day before Trump announced the deal with this company the price was $9.

“There’s a tremendous amount of Trump supporters in the country who are going to just clamor to get some exposure to Donald Trump in whatever way they can,” Eric Diton, of The Wealth Alliance, said.

Look, at this point, even Trump’s biggest critics on the left have to show him some respect because this guy just finds a way to win, even when he is down and out. Amazing really.

From Reuters:

With more than 450 million shares changing hands on Thursday, Digital World topped GameStop trading volumes, which was 197 million at the peak of the meme stock frenzy in January.

More than 17.5 million shares of the SPAC traded by 8:30 a.m. ET on Friday, compared with its 10-day moving average volume of 145,766 shares.

Hedge funds that invested in Digital World are set to make five times their investment, regulatory filings showed, while Patrick Orlando, who backs the SPAC is likely to see a $420 million windfall from the surge in shares.

Some heavy hitters on Wall Street are involved in this too. From Reuters:

Nearly a dozen hedge funds invested in the SPAC, Digital World Acquisition Corp (DWAC.O), in its initial public offering (IPO) in September, according to the filings. Like other SPACs, Digital World did not disclose which company it was seeking to buy.

Hedge funds have pumped hundreds of billions of dollars into these types of vehicles in the past two years.

The investor excitement had fizzled in the past few months as some companies that merged with SPACs failed to deliver on their bullish projections and retail investors nursed losses. Stock market reaction has been so poor to recent deals that some hedge funds only make pennies on the dollar by buying into the IPOs of SPACs and then selling their shares in the stock market or redeeming them for their IPO price.

But the hedge funds that invested in Digital World’s IPO are set to quintuple their investment after Digital World’s shares jumped more than 400% after the deal with newly launched Trump Media and Technology Group was announced. They were hovering around $50 in late afternoon trading on Thursday, giving Digital World a market value of $1.7 billion.

The hedge funds included D.E. Shaw, which oversees $60 billion in assets, and Yakira Capital Management, which invests some $472 million, according to a regulatory filing.