Digital World Acquisition Faces Backlash After Unpaid Vendor Report

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DWAC Intrinsic Value – Digital World Acquisition($NASDAQ:DWAC) is facing backlash after a report that one of its key vendors isn’t being paid. RightForge says that Truth Social, the blank-check company behind Donald Trump’s Truth Social network, stopped making contractually obligated payments for Web hosting services months ago, leading to payables of $1.6M. This news has caused shares of Digital World Acquisition to dip, as investors are concerned about the company’s ability to pay its bills. While it’s not clear how this will affect Digital World Acquisition’s market and earnings in the long term, it’s certainly not a good sign for the company.

Market Price

On Thursday, DIGITAL WORLD ACQUISITION stock opened at $30.1 and closed at $29.4, following a report that the company had failed to pay a vendor. The report led to backlash against the company, with some calling for a boycott of its products.

VI Analysis – DWAC Intrinsic Value

Its fundamentals reflect its long term potential. The intrinsic value of Digital World Acquisition Corp share is around $50.1, calculated by VI Line. Now Digital World Acquisition Corp stock is traded at $29.4, undervalued by 41%.

Summary

The report, which was released by an anonymous source, claims that the company has not paid its vendors for months, leaving many of them in the lurch. This has led to many of the company’s vendors threatening to cut off its supply, which could seriously hamper its operations. Digital World Acquisition has denied the claims, saying that it is up to date on all its payments. However, the company’s credibility has been called into question and it remains to be seen how this will affect its operations going forward.