Trump-Tied SPAC Jumps After Former President’s Big Iowa Win
(Bloomberg) -- Donald Trump’s victory at the Iowa caucuses is lifting shares in the blank-check firm working on taking his media company public.
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Digital World Acquisition Corp. rallied 29% on Tuesday, its best day since July, as it closed at the highest level in more than a year. Shares in Phunware Inc., a tiny software firm that worked on Trump’s 2020 reelection campaign, surged more than 450% in its best day since October 2021.
The former president’s decisive win at the Iowa Republican presidential caucuses has helped solidify his status as the party’s frontrunner for its 2024 nomination, prompting traders to ramp up bets that Trump could ultimately face President Joe Biden at a November general election.
“Trump secured the Iowa Republican caucus with a landslide 51%. Next up is New Hampshire where Haley is polling well. Trump though looks unstoppable,” Neil Wilson, chief market analyst at Finalto, said, referring to challenger Nikki Haley.
Trump-tied stocks including Rumble Inc., the conservative video network backed by billionaire Peter Thiel, have come into focus once again as his campaign has gathered pace. The stock rose 16% for its best day since October 2022.
Shares in Digital World, a special-purpose vehicle which is a favorite with retail traders, rose 17% in 2023, and remains the best performing SPAC. The blank check company has been trying to merge with Trump Media since late 2021.
--With assistance from Bailey Lipschultz.
(Updates share movement throughout.)
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