Digital World Acquisition Corp (NASDAQ: DWAC) stock is up 20% this morning. DWAC stock has risen on the result of the PSQ Holdings IPO of yesterday. If one grouping of conservative types can gain a good stock market valuation then so can another, right? And this is true, obviously so, it's just that our own opinion is that this is more true of DWAC than it is of PSQH even if we seem to find much of the market disagreeing with us.
As we've said before about DWAC: “It's entirely possible to think that Truth Social hasn't been as well managed as perhaps it might have been - we'd tend to that view. We can also wonder about how well the SPAC merger with DWAC is being handled - most of us would hope for better than it has been. But the only thing a social media network really needs is a large enough following - following of anything, person, activity, idea - for there to be enough people who will join it. Trump and MAGA has that, therefore Truth Social has some value and so too does DWAC.” We stand by that too. Quite how much value Truth Social has, therefore DQAC is another thing but there is some. Simply because it has that one thing vital for a social network to have any chance at all - that critical number at start up.
Digital World stock price from NASDAQThe rise today we're sure is about that successful IPO yesterday of PublicSq. As we've said this morning about PSQ Holdings: If the woke and progressive deliberately buy Ben & Jerry's then yes, the countervailing force should also exist. We're not just fine with that we're positively approving of it. We also get the point that all too many large corporations are woke (BUD isn't going to use Dylan Mulvaney again any time soon but there are many other such examples) and that there's a critical mass of those who would like an alternative. As with Trump's Truth Social and the DWAC merger/SPAC (that may or may not happen, who knows?) if you can garner a crowd early on then sure, you've got the beginnings of an interesting business. What, or even how, that crowd is defined and motivated isn't really the point from the business angle - it's can you get a crowd so as to be at scale?”
They're both trading on that same point - their political stance enables them to be at scale right away. So, they have a value.
OK, PSQH is down 15% after yesterday's 114% rise but we do insist that this is the effect on the DWAC price. If one grouping of American conservatives is being highly valued then so should this other grouping of American conservatives. We're not sure there's much more to it so far than that.
