DWAC Stock Price: Digital world acquisition defends $95 despite the sharp pullback

• NASDAQ: DWAC ends Wednesday unchanged despite the upbeat mood. 
• Truth Social users may already be losing interest in the platform.
• The botched launch of the platform could mean long-term irrelevance.

Update: The positive mood seen across the Wall Street indices helped limit the sharp pullback in NASDAQ: DWAC, as the stock price recovered from daily lows to finish almost unchanged on the day at $95.15. Fed Chair Jerome Powell poured cold water on a 50bps March rate hike after almost sealing in a 25bps lift-off, which offered fresh signs of life in the US stocks. Escalating Russia-Ukraine crisis and anxiety ahead of the second round of peace talks, however, kept investors unnerved.

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Truth Social officially launched on February 21st, but there is still a long lineup of users waiting to get access. The longer these users have to wait, the less interested they will surely become. The main point of a social network is to get users active and using the platform rather than sitting on a waiting list. Other active users are frustrated with the lack of a desktop app and without new users, it is the same recycled content seen each day. Even conservative activist groups are close to ditching the platform after they publicly criticized Devin Nunes and Donald Trump Jr. for not allowing access to ‘the people’ from the start. 

DWAC stock forecast

It remains to be seen how the botched launch will affect the stock and the platform in the long-term. Truth Social also isolated a large chunk of the global user base by launching exclusively on Apple’s App Store and not on Google Play which is Android’s version of the App Store. With waning interest already rearing its head, it’s difficult to imagine a long-term viable path to success for Truth Social.

Previous updates

Update: NASDAQ:DWAC struggles around its opening level, up a modest  0.15% and changing hands at $95.24 per share as investors prepare to leave their desks. Wall Street rallied after US Federal Reserve chief Jerome Powell hinted at a 25 bps rate hike this month, below the market's expectations of 50 bps. His testimony before Congress was generally hawkish, but he also noted that there are new levels of uncertainty coming from the war front. Speaking of which, the second round of peace talks will kick-start early on Thursday, and the Russian representative put a ceasefire on the table, which further underpinned the good mood. Heading into the close, US indexes pulled back from their intraday highs, but retain a substantial portion of gains. 

Update: NASDAQ:DWAC managed to keep its head above water on Tuesday, despite global markets tumbling as Russia’s attack on Ukraine intensifies. Shares of DWAC added 3.31% and closed the trading session at $95.10. It is still an inflated price for a pre-merger SPAC stock, as it is trading nearly ten times the NAV price of $10. US markets tumbled after oil prices surged to a seven-year high price of $106 per barrel. The Dow Jones dropped by 597 basis points, the S&P 500 fell by 1.55%, and the tech-heavy NASDAQ erased previous day gains and lost 1.59% during the session.