DWAC, Rumble stocks jump ahead of Trump’s court appearance
DWAC and Rumble (NASDAQ: RUM) stock prices have jumped in the past few days as investors brace for more engagements ahead and after Trump’s indictment. Digital World Acquisitions, popularly known as Trump SPAC, rose by 7.58% on Friday and by 2.35% in premarket trading. Similarly, Rumble stock rose by ~7.12%.
The biggest US news story of this week will be the indictment of Donald Trump, the 45th president of the United States (POTUS). Trump will appear before a Manhattan judge and plead not guilty. His trial is expected to start later this year as the country gets deeper into the election period. It is still unclear whether he will serve prison time and for how long.
DWAC, which agreed to merge with Trump Media, has become the top beneficiary of the lawsuit because of the hype. Data by Google Trends shows that the number of Truth Social users has continued growing in the past few days. Also, data shows that its iOS ranking among social media apps has jumped in the past few days.
DWAC and Trump Media are currently going through a review ahead of the planned combination in June this year. In a recent statement, Trump’s company asked the SEC to investigate the Securities and Exchange Commission (SEC) for delaying the merger review. In a note, an analyst told SA:
“Most significantly, the SEC shows no signs of preparing to approve the proxy. Without that, DWAC holders are unlikely to get whatever benefits, if any, accrue to Truth Social owners.”
Rumble, on the other hand, has done well because of its popularity among conservatives. As a result, the lawsuit could help its website attract more users. Data by Similarweb shows that the number of visitors dropped by 19% in February to over 19 million.
Rumble published strong earnings last week. The company’s revenue jumped to $19.96 million in the fourth quarter while the number of users jumped to 80 million. The average number of minutes per user also jumped by 31%.
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