Sometimes you see things in the market, that just make you scratch your head. Things that you've never seen before.
Something like that is occurring right now. Something that you and I will look back at and say “I remember when...”
Yesterday. Donald Trump, yes THAT Donald Trump former President of the United States officially launched his “special purpose acquisition company,” SPAC for short. The purpose of which is to start a new series of social media platforms, designed, quite frankly, to compete with some of the existing platforms which threw him off. Platforms like Twitter and Facebook and Google. Google isn't strictly speaking a social media company, but they've had their own agenda.
More of that in a minute. Right now we want to discuss how this new stock, Digital World Acquisitions, symbol DWAC, has performed in two days of trading.
And this is the part that is utterly amazing. This is the part you want to write home about. This is the part that we will remember for a long time.
Yesterday DWAC, Digital World Acquisitions began trading at roughly $10 per share. But it shot through that level in a heartbeat. And before you could say, Donald John Trump, it doubled in price. Then doubled again, and finally finished the day up by a factor of fivefold.
An unknown company, in a sector of the market that is increasingly becoming a backwater. Had gone from a total worth of a few million dollars at the start of the day, to over $1 ½ billion dollars by the close.
That's pretty heady stuff, immediately propelling Digital World to the top half of all American stocks by market capitalization. And ahead of such well-known brands as Bed Bath and Beyond and Big lots among many many others.
So I have to confess that I went to bed last night, thinking that was exciting, but probably a flash in the pan. A record not likely to be replicated.
How wrong I was.
As we near the close of the market on day 2 of trading Digital looks to nearly double what they did yesterday. Raising another nearly 1 1/3 billion dollars, and putting their market capitalization at nearly $3 billion.
This puts Digital World solidly in the top 1/3rd of all stocks traded, They're now in the neighborhood of companies, like tech company Yelp, First Bancorp. Money manager Eaton Vance and St Joe companies, the latter two which have been around forever.
And remember Digital World has not yet opened its doors. They haven't made their first acquisition, had their first public shareholders meeting, or issued their first dividend.
They've only just begun.
And what an incredible beginning this is working out to be.
To get some idea of how overwhelming this has been, I'm having real difficulty finding the exact volume traded on the stock. Remember NASDAQ stocks are dealer reported volumes, and that must be running far, far behind.
The charting service I use is having trouble keeping up, I'm currently using MSN Money as the best to follow the stock.
So once again the name of the company is Digital World Acquisitions, it is the new social media company for Donald Trump.
One final note, if you don't think this is having an impact, just look at those 3 mentioned competitors: Twitter, Google, and Facebook. Google is down over 3%, Twitter is down over 4%, and Facebook is down over 5%.