Digital World Acquisition: Is it time to buy or sell?

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Digital World Acquisition ($NASDAQ:DWAC) is a company or stock that faces headwinds and tailwinds. Several contributors on Seeking Alpha have written about the company or stock, including myself. The SPAC is an avenue to which Truth Social, a social media platform linked to former President Donald Trump, is taking itself public.

However, due to merger delays and volatile shareholder votes, it has taken on a more bearish stance in recent weeks. But then Elon Musk bought Twitter.

Share Price

It is headquartered in New York City. As of Friday, the stock opened at $16.4 and closed at $17.1, up by 3.8% from the previous closing price of $16.4. The company has been in the news recently, but most of the news has been neutral.

VI Analysis

Digital World Acquisition is a company with strong fundamentals and long-term potential. Its cashflows and debt levels are healthy, and it is likely to safely ride out any crisis without the risk of bankruptcy.

However, the company is weak in terms of asset growth, dividend growth, and profitability. It is classified as an “elephant” company, which is a type of company that is rich in assets after deducting off liabilities. Investors interested in this type of company may be looking for a safe and stable investment with long-term potential.

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

If you’re considering investing in Digital World Acquisition, now may be a good time to buy. The stock price has been moving up recently, and there has been mostly positive news surrounding the company. Of course, as with any investment, there is always some risk involved. But if you’re comfortable with that, Digital World Acquisition could be a good addition to your portfolio.