Former President Donald Trump’s Truth Social app is now live as of Feb. 20. Its special purpose acquisition company (SPAC) merger with Digital World Acquisition Corp (NASDAQ:DWAC) now has an astounding $18.4 billion market capitalization on a pro forma basis. This is as a result of a huge spike in DWAC stock to $95.15 as of March 2.
Once the merger closes later in 2022 with TMTG, the parent company of Truth Social, DWAC stock will have this huge market cap. Obviously, it assumes that the app will be able to pick up tens of millions of users.
The key question then is will DWAC stock be worth this price? Will Truth Social be able to attract enough users to bring in enough ad revenue to justify this huge valuation?
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