Trump Media and Technology Group (TMTG) will develop the social media app.
After making huge gains last week, the SPAC stock that is linked to Donald Trump’s social media platform plunged sharply Monday afternoon. This was after it received news of a merger with Trump's social media company.
Just after 2 p.m., the stock of Digital World Acquisition Corp. was down 10% ET, trading below $83 per shared
DWAC traded about 4% higher earlier in the day before settling back to hover around the $94 per share "unchanged" level.
This was a significant change from last week when DWAC shares soared from $9.96 per share Wednesday to close to $94.20 per shared Friday, a staggering 845% gain in just two days.
Monday's trading volume was also lower for the so-called special purpose acquisition firm.
According to FactSet, 55 million shares of DWAC were traded as of this afternoon.
Nearly 500 million shares of DWAC traded last Thursday after its price soared over 350% in a single trading session. DWAC was the most traded name on both the consolidated tape and Nasdaq listings of the New York Stock Exchange.
Another sign that Trump's craze has died down or been moderated, Phunware's share price plunged 20% Monday.