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Digital World Acquisition Corp. ended the day up 107%.
At its peak of $ 175 on Friday, the Nasdaq-listed company was 1,657% above its closing price on Wednesday.
The new Trump entity is merging with Digital World Acquisition Corp., which closed at just $ 9.96 on Wednesday. The stock quadrupled Thursday, then climbed to $ 131.90 Friday morning.
“It’s extremely unusual, especially now,” said Matt Kennedy, senior IPO market strategist at Renaissance Capital. “We saw big pops at the height of the PSPC bubble. These days it’s rare to see a PSPC pop over 10%.”
“This is clearly meme equity territory. It is totally out of touch with fundamentals. There are no known fundamentals,” said Kennedy, who cautioned investors that $ 10 should be considered the floor for this action.
“Be prepared to potentially lose everything else,†he said. “This is a purely momentum stock market action.”
The windfall comes despite the latest filings fail to show how much revenue – if any – the Trump Media & Technology Group is generating. This is likely to be minimal, given that the company’s social media platform has yet to launch.
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