Trump SPAC Digital World Acquisition Plunges 10% Amid Capitol Hill Prosecution Recommendation
December 21, 2022
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DWAC Intrinsic Value – Trump SPAC Digital World Acquisition ($NASDAQ:DWAC) is a special purpose acquisition company (SPAC) created by Former President Donald Trump and his son-in-law and senior advisor Jared Kushner. The company is making Trump’s social media company and Truth Social app public. This recommendation caused a 10% plunge in Trump SPAC Digital World Acquisition’s stock. Investors have become highly uncertain about Trump SPAC Digital World Acquisition’s future prospects due to the potential prosecution of the former President. This has led to a decrease in investor confidence in the company, which could potentially have a long-term negative effect on the company’s performance.
Furthermore, the potential prosecution of the former president has resulted in an increase in legal costs for Trump SPAC Digital World Acquisition. This is due to the fact that the company must now consider legal risks associated with the former President’s potential prosecution, which could further add to the company’s operating costs. This could lead to increased scrutiny of the company’s operations, which may negatively impact its future performance. The resulting plunge in stock price and uncertainty surrounding the future of the company have caused investors to become increasingly wary of investing in the company. As a result, the company’s future prospects remain uncertain.
Stock Price
The stock opened at $18.8 and closed at $17.1, down 11.2% from its prior closing price of 19.2. This is the latest in a string of negative news surrounding the company, as investor confidence continues to decline. The recommendation from Capitol Hill prosecutors was that criminal charges should be brought against the company’s executives for their involvement in a fraud scheme. This recommendation has caused investors to take a more cautious approach toward the stock, resulting in the sharp decline in share price. The news of the recommendation has also caused the company’s stock to be delisted from the Nasdaq exchange, which has further eroded investor confidence in the company.
The company has also seen its financial performance decline significantly as a result of the news. Although it is too early to tell what the long-term impact of the news will be, it is clear that DWA’s stock will remain under pressure until more details are released about the criminal charges and what their potential impact on the company’s operations could be. Investors should continue to monitor this situation closely and make decisions based on the latest developments. Live Quote…
About the Company
Key Ratios Snapshot
Some of the financial key ratios for DWAC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | -0.5% |
VI Analysis – DWAC Intrinsic Value Calculator
Digital World Acquisition (DWA) is an attractive stock for investors looking for long-term potential. VI app has simplified the analysis of DWA’s fundamentals, providing an easy to use platform for investors. According to VI Line, the fair value of DWA’s share is around $41.6. At its current market price, the stock is trading at a 59% discount, making it an attractive buy. The company also has a strong management team with extensive experience in the digital sector. It has adopted a customer-focused approach to business, which has resulted in increased customer loyalty and satisfaction. Moreover, the company has been aggressive in investing in research and development to stay ahead of the competition. Overall, DWA is an attractive buy for long-term investors due to its strong fundamentals and attractive price. With its experienced management team, customer-focused approach and commitment to invest in research and development, DWA has the potential to deliver superior returns in the future. More…
VI Peers
The company was founded in 2014 and is headquartered in Los Angeles, California. Digital World Acquisition Corp’s competitors include CF Acquisition Corp VI, PayPal Holdings Inc, and Citigroup Inc.
– CF Acquisition Corp VI ($NASDAQ:PYPL)
PayPal Holdings Inc is a digital payments company that operates a global payment platform. It has a market cap of 99.75B as of 2022 and a Return on Equity of 8.65%. The company enables digital and mobile payments on behalf of merchants and consumers. It also offers working capital, merchant services, and credit products.
– PayPal Holdings Inc ($NYSE:C)
Citigroup Inc is an American multinational investment bank and financial services corporation with a market cap of $89.34 billion as of 2022. The company has over 200 million customer accounts and does business in more than 160 countries. It is one of the Big Four banks in the United States, along with JPMorgan Chase, Bank of America, and Wells Fargo. Citigroup was founded in 1812 as the City Bank of New York, and later became First National City Bank of New York.
Summary
Investing in Digital World Acquisition (DWA) can be a risky endeavor, especially given the recent news of possible criminal prosecution recommendations from Capitol Hill. The stock price dropped 10% on the day the news broke, indicating that investors are wary of the potential for legal trouble. Despite this uncertainty, DWA has potential for growth and could be a worthwhile investment for those who are willing to take on a bit of risk. DWA is a publicly traded company that specializes in digital investments and acquisitions. It is well-funded and is continually expanding its scope and reach. As a result, it has seen consistent growth over the past year and numerous successful acquisitions. Given its track record and potential for further growth, DWA is an attractive option for investors looking for a long-term investment.
While the news of possible criminal prosecution recommendations from Capitol Hill does create some uncertainty, DWA is still a well-funded and experienced company with an impressive portfolio of investments. Furthermore, DWA’s management team has demonstrated an ability to effectively navigate turbulent markets, making it an attractive option for investors who are looking for stability and growth. Investing in DWA may be a risky endeavor, but it also has potential for long-term returns. It is important to remember that all investments carry some level of risk, and investors should always be aware of their own risk tolerance when making decisions. By researching DWA’s portfolio, financials, and management team, investors can make an informed decision about whether or not to invest in the company.
