The stocks of two specific companies are surging today. The first is the conservative social media platform Rumble (RUM). The second is Digital World Acquisition Corp. (DWAC), a special purpose acquisition company. What connects the two? They’re both tied to former president Trump, who has just been indicted on criminal charges. Here’s what you need to know.
What’s happened?
Former president Donald Trump became the first American president (current or former) to be criminally indicted yesterday. The New York indictment involves the hush money payments Trump allegedly paid to adult film star Stormy Daniels during the 2016 campaign. It’s unknown what the exact charges are as they are under seal, but Trump is expected to voluntarily surrender to law enforcement and is scheduled to appear in court in New York on Tuesday. Following Trump’s indictment, shares in two companies tied to Trump are up today: Digital World Acquisition Corp. and Rumble.
What is Digital World Acquisition Corp.?
As Bloomberg notes, Digital World Acquisition Corp., stock ticker DWAC, is the special purpose acquisition company (SPAC) that is taking Trump’s media company public. That media company includes the former president’s social network, Truth Social. At the time of this writing, in premarket trading DWAC stock is up over 10% to $14.40 per share.
What is Rumble?
Rumble is video-sharing network that is primarily used by those with right-wing ideologies. Though Rumble, stock ticker RUM, is a competitor of sorts with Truth Social, many of Trump’s supporters use the platform. At the time of this writing, in premarket trading, RUM shares are up over 13% to $10.61 per share.
Okay, but why are these stocks up?
While being indicted is bad news for Trump, his indictment is sure to rally those on the right, who will likely flock to their preferred social media platforms of choice. That means those platforms—Rumble and Truth Social—are likely to see skyrocketing engagement. Or, at least, that’s what investors seem to be betting on in premarket trading this morning.
Are there any other reasons for the share surges?
Possibly. As Reuters reported on March 29, Digital World Acquisition Corp announced it had been cleared by Nasdaq over select dues nonpayments. And just yesterday Rumble reported average global monthly active users were up 142% from the previous period a year ago, to 80 million. Those bits of news are no doubt good for the respective stocks, as well.
What about other Trump-linked stocks?
As of the time of this writing, shares in Phunware, Inc (stock ticker PHUN) are up just over 4% in premarket trading today to 64 cents. Phunware is a software company that worked on Trump’s 2020 reelection campaign. However, at just a 4% jump, PHUN stock isn’t close to the double-digit boosts RUM and DWAC have experienced so far in the wake of Trump’s indictment news.
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