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DWAC STOCK CRASHED - BUT IS IT ABOUT TO EXPLODE AGAIN TOMORROW? - YouTube
Channel: Paul Thomas Investing
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digital world acquisition corp is
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falling and falling hurt is dwac over or
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does this provide an opportunity
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right now the volume of trading on this
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stock has dropped significantly since
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last week but will another spike in
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volume cause another upward spike
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remember gme earlier this year after
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hitting highs of over 480 dollars it
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dropped down to under 40 dollars before
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ripping back up again to over 300 could
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something similar happen to dwac if
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you're new to the channel i want to hear
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more about exciting stocks about to make
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huge gains then hit that like and
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subscribe button
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remember this is not financial advice
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just my opinion of what could possibly
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become an opportunity now let's dive
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back into the stock that has got backs
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moving again
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so the two stocks linked to donald trump
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stopped in trading shortly after the
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ex-president detailed plans for one of
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the companies and the other firm said it
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would sell additional shares to raise
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capital
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these are the two stocks that i talked
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about over last weekend digital world
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acquisition corp and funware
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which came after both companies saw
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massive gains in their stock values near
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the end of last week
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in this video i will focus mainly on
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dwac because i feel there's a lot to
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address here i'll make another video
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later on this week on fun where i feel
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that deserves its own attention because
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they did exactly what i warned they
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might do over the weekend
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i had said that funware
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and that its share price was no longer
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based on its fundamentals and that
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management might try to take advantage
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of this huge opportunity to raise cash
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with a share offering i even pointed
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directly to the financial statements and
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showed a the poor financial position of
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the company and b
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the notes in the accounts that showed
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that management felt the need to do a
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share offering just to fund continuing
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operations
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anyways i'll bring you an update video
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on that as soon as possible so dwacs
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share price skid at more than 20
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in early trading tuesday and in total is
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down now over 30 from monday morning
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on tuesday an hour before trading began
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trump issued a lengthy statement
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about his plans for the new social media
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app he intends to roll out and other
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aspects of the new company to take on
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big tech censorship we are creating a
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big tent platform truth social
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the company is inviting people of all
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political stripes and all different
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viewpoints to come and participate once
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again in a great american debate
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that's what the country is supposed to
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be about
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now something that's not mentioned here
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is that this goes far beyond just the
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country
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this has a reach far beyond the united
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states social media in its essence is
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global and the reach of truth social
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will be global
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whether he can achieve this or not is a
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completely different matter however he
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went on to take a swipe at big tech and
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big media players in other words
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facebook twitter disney netflix and
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others like that
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let's not forget that these are the
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companies that have banned him from
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their platforms
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these are the companies that he spoke
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out against time and time again for
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publishing fake news as he put it but
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before they banned him he was one of the
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most active social media users around
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having amassed over 89 million followers
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on twitter and 33 million on facebook
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so really this is trump saying if you
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ban me from your platform i'm just gonna
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make my own platform and take you on but
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the question is as an investor should we
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be betting on this new company or
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against it just like i said over the
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weekend we know nothing about this
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company really
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digital world acquisition corp and trump
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media and technology group have no
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revenue no cash flows no profits or even
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a clear business plan they have a vision
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but not a clear business plan and yet
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their stock had rose up over 17 times
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its initial price in just the space of
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48 hours so investors need to remain
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cautious and not get caught up in the
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hype
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now i found this article quite funny
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calling dwac the meme stock to end all
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meme stocks the trading in dwac makes
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the meme stock phenomenon of gamestop
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and amc look mild now i take issue with
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this this does not make gme look mild
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gamestop was the phenomenon that nothing
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else has come close to
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first of all dwc went from ten dollars
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up to a hundred and seventy dollars and
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then began to drop as trading was halted
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multiple times
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dwac has not yet had another run up
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let's compare this to gamestop and
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saying that gamestop was mild gma went
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from under three dollars at its low
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point up to over 483 it spiked up in
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january and in february before dropping
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down as low as 40 dollars
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but then back up to 300 in march and
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june
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and is still up
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over 1200 percent from one year ago
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so how the author can say that gme is
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mild in comparison to dwac is a joke
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what made gamestop so powerful of a
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movement was that not only did people
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see this as some sort of short squeeze
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opportunity
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gamestop represented a chance to unite
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and take on the major hedge funds and
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everybody got behind that idea
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i remember seeing pictures being posted
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of people buying fractions of shares at
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four hundred dollars putting in whatever
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they could afford whether that be twenty
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dollars or thirty dollars
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titling these pictures as doing their
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bit in the fight against hedge funds
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like citadel
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the power in gme
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was the fact that there was millions of
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people doing this and they felt they
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were doing it for a cause
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as the author says here
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buying dwac is a bet on donald trump
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remaining newsworthy and tmtg remaining
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a meme stock
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more so than it is a bet on the next big
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social media network
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and maybe that is correct
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but maybe
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people will see this in a similar way to
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gme versus hedge funds and that in
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itself could drive the share price back
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upwards as for trump remaining
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newsworthy
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he has been since the 80s and i think he
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will remain newsworthy regardless of the
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outcome of this company which brings me
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back to the weekend and an article i
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read
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that looked at this on a more long-term
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view than just 48 hours in the markets
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truth social
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one trillion dollars in 10 years is
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feasible truth social and parent company
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trump media technology group are
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basically just
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absurdly lofty ideas
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however the massive total addressable
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market opportunity clearly exists and so
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does the intense pent-up demand for it
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as i said a moment ago a lot of people
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might see this as a break from facebook
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let's not forget that facebook has come
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in for a lot of criticism
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from both users and governments in
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recent years
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in the short term a lot of people might
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view this very similarly to game stuff
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versus citadel
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in this article
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they look at the business model the
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market opportunity
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the two big challenges that the truth
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social must overcome and the stocks
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10-year path to one trillion dollar
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market capitalization
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another thing i spoke about over the
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weekend
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was when mark zuckerberg was proclaimed
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foolish for not selling facebook for one
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billion dollars in 2006
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it's now worth one trillion dollars so
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that just goes to show anything is
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possible
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and jeff bezos was also slated by
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analysts told that amazon would never
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make it
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so the next thing pointed out here
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is that trump does have a list of failed
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businesses too so nothing can be taken
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for granted trump casinos failed
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trump stakes failed magazine failed
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vodka failed airlines failed
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but it does mention
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that along with all these failures the
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power of trump's brand continued to grow
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any publicity is good publicity and that
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is very true
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despite his long list of business
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failures he has a strong track record of
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generating very strong demand for his
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social media content for example prior
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to being banned his ability to attract
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users on social media platforms had been
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very strong i spoke about the potential
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market in my previous video but trump
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media and technology group aspires to
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create a rival they want to rival the
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big tech status quo
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and there is clear reason to believe
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that the opportunity is there the
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question is whether tmtg can capitalize
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on it or not and that is the big
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question
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the two big challenges that tmtg must
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overcome air
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one gathering a critical mass of users
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and two averting
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the certain onslaught of attacks from
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the incredibly massive and
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unquestionably powerful big tech
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companies
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and a problem here
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is that many companies have come up
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against
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these big companies in the past
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but the likes of facebook twitter amazon
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google
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are too big to be taken on
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no startup ever has a chance
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but this company potentially could
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not everybody has the sort of capital
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behind them
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than this company would have another big
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challenge here is the app store it would
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be quite easy for big tech companies
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like apple to make up an excuse to kick
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truth social off their app store
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this would be a significant challenge
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the tmtg would need to overcome
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the true risk will be whether the
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business can overcome the massively
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powerful and obscenely wealthy big tech
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companies that will do everything in
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their power to attempt to stop tmtg from
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succeeding whether they can overcome
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this challenge or whether it will just
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be another failed business in a long
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list of failures is yet to be seen
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i found this article really good i
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thought this was a fantastic read i'll
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put a link to this in the description
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for anyone that wants to have a read of
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the full article this is written by blue
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harbinger
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and this offers something other than the
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extreme euphoria that we seen around the
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company on thursday and friday and the
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extreme pessimism regarding dwac
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yesterday and today
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so guys that brings us to the end of the
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video if you've watched all the way
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through then hit that like button it
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really helps the channel out a lot what
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do you think will happen next at dwac
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will this continue to drop or will this
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rise again and what knock-on effects do
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you think this will have on other spacks
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and do you think having such organized
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groups like wall street bets type of
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trading is a good or bad thing in the
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stock market of 2021 drop me a comment
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and let me know what you think
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in this video i'm giving you my opinion
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and this should not be viewed in any way
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as financial advice but if you do enjoy
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my opinions and if you're new hit the
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subscribe button and bell notification
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and i'll catch you in the next one
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