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How do you put a price on a non-existent social-media platform for fascists, liars and other dangerously delusional undesirables depending on a deal that may be fraudulent and therefore may not happen, whose only actual asset is a former president who himself may soon be indicted for fraud and which no serious investor will touch with a barge pole? No, seriously, how do you?

DWAC warrants are trading around $27, compared with the stock’s $80. Some analysts say they are undervalued because assuming the deal closes with the stock price roughly where it is now, warrant holders would pay $11.50 per share and could immediately sell at the market price of several times that. By that logic, some analysts say the warrants should roughly trade at the stock price minus $11.50, or in the high $60s, instead of the high $20s…. The gap between shares and warrants is evidence that individual investors are driving up more well-known shares and options, some analysts said. Digital World’s stock ticker, DWAC, has been trending on some social-media platforms in recent weeks and its trading volumes at times have been comparable to those of much larger companies.

Of course, even some of those traders appear to have noticed that the thing they have valued at $3 billion doesn’t actually exist, and appears in no danger of doing so any time soon.

The stock price of the blank-check company that has partnered with ex-President Donald Trump’s social media firm plunged Monday in late-day trading as news of the delay in the app’s launch spread on Twitter…. In early January, Truth Social indicated on the Apple App Store that it would launch on Feb. 21.

But Devin Nunes, the recently appointed Trump Media and Technology Group CEO, during an appearance on Jan. 23 on Fox Business said that the app would be released by March 31.

How Much Is Trump’s New Social-Media Company Worth? Traders Can’t Decide [WSJ]
Trump SPAC stock Digital World Acquisition Corp. plunges after news spreads of delayed app launch [CNBC]

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