DWAC: the biggest meme stock

DWAC stock, Meme stock, stock to buy now. TMTG
This illustration photo shows a person checking the app store on a smartphone for "Truth Social", with a photo of former US president Donald Trump on a computer screen in the background, in Los Angeles, October 20, 2021. - Former US president Donald Trump announced plans on October 20 to launch his own social networking platform called "TRUTH Social," which is expected to begin its beta launch for "invited guests" next month. The long-awaited platform will be owned by Trump Media & Technology Group (TMTG), which also intends to launch a subscription video on-demand service that will feature "non-woke" entertainment programming, the group said in a statement. (Photo by Chris DELMAS / AFP) (Photo by CHRIS DELMAS/AFP via Getty Images)

Donald trump has been away for a year and now he has announced his return with the surprising news of his new company. Trump Media & Technology Group (TMTG) going public. This is done through the merger with Digital World Acquisition Corp. (DWAC). Not long after the announcement, DWAC shares have seen a high raise of 3 digits percentages and as it seems it will continue the same path. There are many factors, including  500 million shares being exchanges in single trading session, pointing to DWAC being the biggest meme stock of all time. Now we going to show you why it’s stock to buy now.

Is it a meme stock?

Earlier this year we saw some company shares like GameStop (GME) and AMC (AMC) were traded without any rational reason. These pumping were made through retailers and social media groups who forcefully bought the stock. This was such a big development that even U.S congress hold meetings and hearings to follow up on it. Although the dust of those meme stocks have already settled, whether they had gain or loss, the merger of DWAC and TMTG could revitalize the fire.

The development on the merger of the two companies is so interesting. During a 10-day trading sessions, the average of shares exchange was only 150,000. After DWAC merger announcement, in a single day market had a sky-rocketing number of 500 million shares exchanged. Shares hit a high price of around $52 and a growth of %350 and they continued to go higher; even after the market closed. So, as long as marketers buy with the same momentum, DWAC shares will continue to climb in the upcoming month.

Now there are some interesting facts about this merger deal

TMTG goal of this merger is to gain access to capital market in the shortest and quickest way. Fact is, When a public company merges with a SPAC, there will be no need to file an IPO and wait a few month to get an approval. Now once the merger deal is done, anyone who has DWAC shares also owns TMTG. That’s a double win for them.

When we say TMTG, we basically saying Donald Trump. He had only 3 million followers on twitter and by 2021 his followers went up to 88 million. If we take the growth of his followers into account, Donald Trump has his way of attracting attention. He has his die-hard fans and that can play an important role in the growth of TMTG.

TESLA (TSLA) and ARK (ARKK) have had the same history, having shareholders who would buy shares with full appreciation and support of the company as they fully trust the future plans of the company.

Therefore, it is not far from truth to say that companies who create a community of followers and believers for themselves can have a successful long run.

There is a mountain to climb

At this moment TMTG has no business offering and yet we can see the raise of it’s stock. There is a good reason behind this. TMTG announces that they are going to offer three major products which are a streaming service; a new network and a social network. They show their high ambition by introducing their competitors as big tech companies like Facebook, Twitter, Netflix and few others. But still TMTG’s final product, unlike those competitors, is not ready yet. Another hurdle is the liquidity and the cash position of TMTG after the merger is yet to be determined.

The fact that Big Tech players like Netflix and Twitter have tens of billions of spend and gain annually; TMTG’s limited sources will make it hard competing with those giants.

At the early stages, what TMTG is counting on is Trump’s loyal supporters and fans to gather up behind TMTG and help a rapid customer acquisition. We should remember how AMC and GameStop utilized their cult fans. That’s exactly how TMTG is still seeing stock price raise and it may well continue for a longer period.

DWAC stock price and price target. It's a biggest stock to buy now and meme stock for lifetime. TMTG
DWAC stock price and price target.

Is it a stock to buy now?

When we say TMTG, we are talking about a company that currently has no financial stats, no clear  future plans and not even released any products yet, let alone the time that will take for the merger to complete. However, one thing that we know for sure is that meme stocks can return considerable amount of profit if the timing of the trade is right as the yield of the stock has a limited window. The DWAC SPAC, according to the evaluation we made above, can see higher share prices in a short term if it keeps this momentum. It is wise not to overexpose the portfolio, so the downside of the trade is under control.

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