About Digital World Acquisition Corp (DWAC)

Digital World Acquisition Corp is a special-purpose acquisition company (SPAC). For those unfamiliar with the term, SPACs are essentially shell corporations that have a primary objective: to help companies go public without the intricacies and prolonged timelines associated with the traditional IPO process.

One of the most significant events in DWAC’s timeline is its association with Trump Media & Technology Group (TMTG). Founded by the former U.S. president, Donald Trump, in 2021, TMTG is a media and technology entity aiming to make a mark in the American digital landscape. In October of the same year, a merger agreement was announced between TMTG and DWAC. This merger, once finalized, would catapult TMTG into the public trading arena.

As of April 2023, Donald Trump holds a commanding ownership of TMTG, with a stake of about 90%. Steering the ship is Devin Nunes, who took the reins as the company’s CEO in January 2022. Under his leadership, TMTG introduced its social networking platform, Truth Social, in February 2022.

No discussion about DWAC would be complete without addressing the controversies surrounding its associations. ARC Capital, a Shanghai-based firm instrumental in DWAC’s creation, has been under the SEC scanner for allegations related to misrepresenting shell corporations. Furthermore, in 2021, there were murmurs about DWAC’s association with China Yunhong Holdings, a company based in Wuhan, Hubei. While these ties were promised to be severed by December 2021, they did add to the intrigue surrounding DWAC.

Fast forward to August 2023, and the much-anticipated merger between TMTG and DWAC is still in the pipeline. However, there’s a glimmer of hope for those eagerly waiting, as DWAC has managed to secure shareholder approval for extensions to finalize the deal. The new deadline? September 8, 2023.

DWAC’s Historical Performance

Digital World Acquisition Corp (DWAC) made its debut on the stock market on September 9, 2021, with an initial offering price of $10 per share. The initial response from the market was lukewarm, with the stock trading relatively flat, showing no significant movement in either direction for the first month.

The stock’s trajectory took a dramatic turn on October 20, 2021. The announcement of DWAC’s intended merger with Trump Media and Technology Group (TMTG) set the stock market abuzz. The merger’s primary objective was the creation of a new social media platform, Truth Social. The market’s reaction was nothing short of electric. Within a span of two days, DWAC’s stock price soared to an intraday high of $175.16 on October 22, marking a jaw-dropping 1,657% increase from its IPO price.

However, as is often the case with such rapid ascents, DWAC’s stock price began to stabilize in early 2022, trading in the range of $40-60 per share. Several factors contributed to this stabilization, including delays in the launch of Truth Social, a downturn in the broader market, and the looming shadow of regulatory scrutiny.

The latter half of 2022 saw DWAC’s stock price experiencing a downward trend, with prices hovering between $15-25 in August and September. The primary cause of concern was the impending closure of the SPAC deal.

DWAC Price History

Here’s, a comprehensive overview of the historical monthly stock prices for Digital World Acquisition Corp (DWAC) spanning from October 2022 to September 2023.

DWAC’s Current Market Position

Digital World Acquisition Corp. (DWAC) has been in the spotlight for various reasons, and understanding its market position requires a deep dive into both its fundamental and technical aspects.

Fundamental Analysis

DWAC’s current market dynamics present a mixed picture. With a current price of $16.82 and a market capitalization of $625.88 million, the company holds a significant position in its sector. The PE ratio stands at 40.05, suggesting that investors currently have high expectations of future earnings. However, the price-to-book ratio of 2.92 indicates that the stock might be reasonably valued when compared to its tangible assets.

Also, Several recent announcements have played pivotal roles in influencing DWAC’s stock trajectory:

1. The anticipated merger with Trump’s Truth Social has been delayed.
2. The stock experienced a dip following Trump’s announcement of his return to a new social media platform.
3. The postponement of the shareholder vote to extend the merger deadline was a significant event.
4. The merger deadline with Trump Media & Technology Group has been extended to Dec. 31.
5. The resignation of the independent accounting firm, Marcum LLP, has led to a quest for a new accounting partner.

These events have created ripples in the stock’s performance, with certain news leading to stock value declines.

Technical Analysis

DWAC has seen a decline of 32.58% over the past year. This decline positions the stock significantly below its 52-week high, with a price change from that high of -42.2%. Also, The momentum for DWAC appears to be on the downside, given its negative price trajectory over various periods. The trading volume, currently at 205,103, is considerably lower (70.6% less) than its 6-month average, hinting at decreased trading interest or activity around the stock recently

DWAC Stock Price Prediction & Forecast

DWAC Stock Price Prediction & Forecast 2024

By 2024, DWAC’s average stock price is anticipated to reach $40.23, marking a significant increase of 151.44% from its previous levels. The optimistic scenario suggests a peak price of $80.21, a whopping 401.31% rise. On the flip side, the minimum price might hover around $20.11, which still represents a 25.69% growth.

DWAC Stock Price Prediction & Forecast 2025

Moving into 2025, the momentum seems to continue. The average stock price is predicted to climb to $50.17, reflecting a 213.56% growth. The bullish prediction sets the maximum price at an impressive $100.33, up by 527.06%. Meanwhile, the conservative estimate places the stock at a minimum of $30.09, an 88.06% increase.

DWAC Stock Price Prediction & Forecast 2026

As we approach 2026, DWAC’s stock trajectory appears to remain on the upward trend. The average price is expected to be $55.14, a 244.63% rise. The most optimistic forecast suggests a peak at $120.28, a staggering 651.75% growth. On the lower end, the stock might be valued at around $35.11, marking a 119.44% increase.

DWAC Stock Price Prediction & Forecast 2027

By 2027, the projections for DWAC’s stock remain optimistic. The average stock price is forecasted to be $60.19, indicating a growth of 276.19%. On the higher end, the stock might peak at a remarkable $140.38, a 777.38% surge from its earlier figures. On the conservative side, the stock could settle around $40.12, still a commendable 150.75% rise.

DWAC Stock Price Prediction & Forecast 2028

In 2028, DWAC’s stock is expected to maintain its upward trajectory. The average price is predicted to touch $70.22, showcasing a 338.88% increase. If the bullish trend holds, the stock might reach a high of $160.44, translating to a 902.75% growth. However, in a more reserved scenario, the stock might be valued at a minimum of $50.21, representing a 213.19% growth.

DWAC Stock Price Prediction & Forecast 2029

As we delve into 2029, the momentum for DWAC seems to be holding strong. The average stock price is projected to rise to $80.26, marking a 401.63% growth. The optimistic outlook suggests a potential peak at $200.52, an astounding 1,153.25% increase. On the other hand, the stock might find its floor at around $60.31, still a significant 276.94% rise.

DWAC Stock Price Prediction & Forecast 2030

Moving into 2030, DWAC’s stock continues to show promise. The average stock price is anticipated to climb to $90.29, reflecting a 464.31% growth. In a bullish scenario, the stock could soar to a high of $250.58, a staggering 1,466.13% increase from its baseline. Conversely, in a more conservative estimate, the stock might hover around $70.23, still marking a 338.81% uptick.

DWAC Stock Price Prediction & Forecast 2040

By 2040, the projections for DWAC’s stock remain robust. The average stock price is forecasted to reach $200.51, indicating a growth of 1,153.19%. On the optimistic side, the stock might peak at an impressive $500.97, a 3,031.88% surge from its initial figures. On the lower end, the stock could settle at about $150.37, representing a significant 839.81% rise.

DWAC Stock Price Prediction & Forecast 2050

Looking ahead to 2050, DWAC’s stock trajectory appears to be on a sustained upward path. The average price is predicted to touch $250.67, showcasing a 1,466.69% increase. If the positive trend persists, the stock might reach a zenith of $600.84, translating to a 3,655.25% growth. However, in a more tempered scenario, the stock might be valued at a minimum of $200.42, marking a 1,152.63% growth.

Factors Affecting DWAC Stock

DWAC’s stock trajectory is influenced by a mix of internal strategies and external market dynamics. Here’s a breakdown of the key elements that could shape its future:

1. TMTG Merger Status: The merger with TMTG is valued at $1.7 billion. Any hiccups, delays, or a failure to finalize this deal could put downward pressure on DWAC’s stock.
2. Truth Social’s Growth: The success of the Truth Social platform is pivotal. DWAC’s stock performance might mirror the user growth of Truth Social. However, challenging established social media giants won’t be easy.
3. Trump’s Influence: DWAC’s stock has shown sensitivity to developments related to Donald Trump. His ongoing political relevance and actions could sway the stock in either direction.
4. Financial Milestones: TMTG has set a revenue target of $1.7 billion by 2026. Achieving profitability is crucial for the stock to maintain or exceed its current valuation in the long run.
5. Regulatory Challenges: DWAC has faced scrutiny over potential merger irregularities. Any additional regulatory complications could dampen investor confidence.

Should We Invest in DWAC Stock?

Deciding to invest in DWAC requires weighing its potential rewards against its risks. Here’s a simple breakdown:

The Good

• Speculative Appeal: DWAC has a market cap of $625 million and a float of 30 million shares. This, combined with a high short interest of 28%, could lead to potential short squeezes.
• Potential Value: DWAC might acquire rights to Trump’s Truth Social, which could be valuable if it gets regulatory approval.

The Concerns

• Financial Health: DWAC’s financials are a bit shaky. With an EPS of -$0.42 and a concerning EV/EBITDA ratio of -63x, there are reasons to be cautious.
• Ownership: Insiders own less than 4% of the shares, which might raise questions about the company’s management and direction.
• Competition: Launching Truth Social won’t be easy. DWAC will be up against big players in the social media world, and there are many unknowns about how their technology will perform.
• Stock Performance: DWAC’s stock has dropped a lot from its 2021 highs. While it still has some appeal as a “meme stock”, this drop might make some investors nervous.

DWAC is like a lottery ticket. It could offer big rewards, but it also comes with big risks. Right now, with so many uncertainties around its main projects and its financial health, it might be best for most investors to wait and watch.