Donald Trump wears a red "Make America Great Again!" hat. Jae C. Hong/AP Images Jae C. Hong/AP Images
Following the Trump deal, retail traders have been flooding into Digital World Acquisition Corp. stock.
According to Fidelity, DWAC has the highest number of buy orders, with an increase of around 1,000%.
The stock received a surge of comments after the deal. One Redditor wrote, "DWAC: Make SPACS great again."
Retail traders are thrilled about the latest deal with Donald Trump.
Trump announced Thursday that Digital World Acquisition Corp., a SPAC called Digital World Acquisition Corp., would take his newly created media company public. The shares of the blank-check company which trade under the ticker DWAC have risen nearly 1,000% over the past two days since Trump's announcement.
Retail trader hype was a key factor in the epic rally.
Fidelity reported that DWAC was top-ranked buy order by brokerage customers on Thursday, and it remained at the top of the list on Friday. Topstonks data shows that DWAC was the most popular stock on investing social media sites like Reddit or Twitch on Friday.
SPACs, shell companies that raise money in an IPO to take a private company public, have been in a bubble. However, retail traders have moved on from the hype. Litquidity, a well-known social media finance meme account, said in a newsletter that Friday morning that SPACs were back in fashion thanks to "Trump Media" and "WeWork".
Reddit and Twitter exploded with mentions of Trump and DWAC, including references to some former president's favorite phrases. One user posted on the r/spacs thread, "DWAC: Make SPACS great again."
Trump Media & Technology Group was valued at approximately $4.5 billion after trading halted at $131.90 stock prices on Friday.
The original deal valued the company at $1.7 billion, but it did not provide any financial guidance or statements. To compete with "Big Tech", the media company will launch Truth Social. Although the site is on a waiting list, it has not yet been launched. According to the company, a beta version will launch next month.
The stock's two-day-long rally is similar to GameStop's January surge when the meme-stock craze started. "This will be the meme stock of meme stocks," wrote another user in r/WallStreetbetsElite, in response to a bullish post about the company.
One Redditor made a mockery of Trump by writing, "$DWAC IS GONNA BE YUUUUUGE."
