In the wake of the news that Elon Musk purchased Twitter for $44 billion and will privatize the company, stock in the company behind the launch of former President Donald Trump’s social media platform “Truth Social” has taken a nosedive, according to Yahoo! Finance.
Shares of Digital World Acquisition Corp. dropped by as much as 17% as news of Musk’s purchase hit the headlines. But after Trump announced that he would not be returning to Twitter and instead would stay on Truth Social, the stock bounced back.
“I am not going on Twitter. I am going to stay on Truth,” Trump told Fox News. “I hope Elon buys Twitter because he’ll make improvements to it and he is a good man, but I am going to be staying on Truth.”
From the New York Daily News:
Despite the stock plunge Monday, the price still values the company at more than $2 billion, surprisingly high for a business with virtually no operating history or publicly available financial figures.
The roller coaster ride for DWAC stock on Monday is related to the fact that the former president has touted his platform as a competitor to Twitter that would cater to conservatives.
“We’re taking in millions of people, and what we’re finding is that the response on TRUTH is much better than being on Twitter,” Trump said. “Twitter has bots and fake accounts, and we are doing everything we can.”
He added: “The bottom line is, no, I am not going back to Twitter.”