Bid to disrupt Big Tech

$Digital World Acquisition Corp(DWAC.US)$ surged sharply and continued to make massive gains for its shareholders after the announcement of a deal to merge with Trump Media & Technology Group. The combined company intends to launch a new social network, Truth Social in a bid to take on social media titans $Facebook(FB.US)$ and $Twitter (Delisted)(TWTR.US)$. The vision of Truth Social is to disrupt some of the most powerful companies like $Alphabet-A(GOOGL.US)$, $Amazon(AMZN.US)$, $Apple(AAPL.US)$, $Microsoft(MSFT.US)$, $Netflix(NFLX.US)$ and $Disney(DIS.US)$. The ticker was among the most popular mentions on Reddit's WallStreetBets, which could push $Digital World Acquisition Corp(DWAC.US)$ to meme stock status like $AMC Entertainment(AMC.US)$ and $GameStop(GME.US)$. The speculative mania that has surrounded Trump's comeback has generated incredible gains for those who have bought shares of $Digital World Acquisition Corp(DWAC.US)$ early when the news of the merger was announced. $Digital World Acquisition Corp(DWAC.US)$ plans to use the fresh funds to build and expand Truth Social. But that may not be sufficient to compete with social media giants $Facebook(FB.US)$ and $Twitter (Delisted)(TWTR.US)$, which collectively spend billions of dollars yearly to enhance their already massive networks. Still, Trump has built a devoted following and it should not be a surprise if many of his supporters choose to embrace his new platform. Investors of $Digital World Acquisition Corp(DWAC.US)$ need to understand that the stock is now trading at a steep premium and are thus taking on higher risk. While early investors would marvel at the rally, it remains to be seen if the gains would continue. Its future is still far from certain.
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