Trump Media Rollercoaster: DWAC Soars on Hopes and Hype, Struggles to Gain Traction, Ultimately Merges Despite Fundamentals
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Stage 1 DWAC was a concept stock valued for its plans to acquire Trump Media, not fundamentals. Share prices dropped as realities set in.
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Stage 2 The launch of Truth Social brought attention but adoption was low. Investigations and accounting issues hurt DWAC.
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Stage 3 By 2023, Truth Social's business was struggling and the acquisition was deferred. But Trump's presence kept some investors engaged.
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Stage 4 Despite terrible financials, the merger finally happened in 2023. The valuation is extremely high compared to other stocks.
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Stage 5 Trump Media is less a meme stock than a cryptocurrency - bought for expected price rises and user affiliation rather than business prospects.
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