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DWAC STOCK 馃殌- JUST GETTING STARTED - BE READY! IMPORTANT UPDATE - YouTube
Channel: Paul Thomas Investing
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is this stock getting ready to gain back
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this week's losses the stock that i
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mentioned in this video
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are some of the most traded stocks in
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the world right now
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this back is the most exciting space
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stock in the world right now the stock
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is of course digital world acquisition
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corp ticker dwac
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the huge interest in this back has
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cooled off over the past week but i feel
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there is still a huge gain to be made on
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this this could be a 100 billion dollar
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company but this stock provides tons of
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opportunities too in the short term if
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you're new the channel and 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 i'm not a financial
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advisor and this is not financial advice
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i encourage everyone to do their own
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research if thinking about investing in
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this or any other stock now let's dive
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into this exciting stock
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digital world acquisition corp is a
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blank check company
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formed for the purpose of effecting a
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merger capital stock exchange asset
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acquisition stock purchase
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reorganization or similar business
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combination with one or more businesses
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intending to pursue a combination with a
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leading tech company and in this case
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the target company is tmtg
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trump media and technology group is the
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latest company to be set up by former us
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president donald trump and is planning
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to be a uniting force for freedom of
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expression the company will operate
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across its three main brands truth
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social tmtg plus and tmtg news with a
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clear vision for the company going
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forward
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tmtg are building a media and technology
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company rooted in social media digital
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streaming and more
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tmtg
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intends to even the playing field by
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providing people with an open media
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platform where they can share and create
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content without fear of reputational
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ruin now this talk went crazy when
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donald trump announced plans to launch
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the new social media network truth
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social via this merger with dwac
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he said that the platform would stand up
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to the tyranny of big tech
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accusing them of silencing opposing
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voices in the us
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of course this comes after trump was
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banned from twitter and suspended from
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facebook after the us capitol riots in
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typical and comical trump fashion
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he had stated that we live in a world
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where the taliban has a huge presence on
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twitter yet your favorite american
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president has been silenced and then
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went about setting up his own social
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media platform he wants to create a
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platform that not only rivals twitter or
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facebook but tmtg has much bigger plans
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tmtg is looking at the opportunity to
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disrupt big tech
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tmtg are looking to rival facebook and
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twitter with truth social
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streaming services and conventional news
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such as cnn and iheart media
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with tmtg plus and tmtg news
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and looking to rival
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amazon microsoft and google
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with its tmtg tech stack
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tmtg sees this as an industry ripe for
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further segmentation with potentially
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hundreds of millions of users where they
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reckon that one in three would use a
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trump-backed social media platform
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donald trump has been using social media
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for years to connect with his supporters
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prior to this he had a huge reality tv
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presence
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with his show the apprentice
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and before being banned off social media
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he had amassed
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over 89 million followers on twitter and
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33 million on facebook it's very
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possible that these new media platforms
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could be very successful and considering
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the massive celebrity following that
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trump has truth social could very
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quickly find itself with a very high
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number of users if the launch is
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successful
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dwac is the culmination of all meme
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stocks the meme stock and spac
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phenomenon
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has gone to the extreme
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as digital world acquisition corp
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d wax price and volume trends make the
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meme stock trading
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frenzies for gamestop and amc
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entertainment look mild those businesses
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actually generate revenue and have
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concrete business plans dwac offers
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neither
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dwac is a vehicle for tmtg to raise
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capital and has become a meme stock
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target for speculators looking to prop
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up and cash in on donald trump's social
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media power
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tmtg
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will have close to 300 million dollars
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in capital once the stack merger closes
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and no realistic plans on how it will
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operate a business given the stocks
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meteoric rise lack of fundamentals and
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no clear business plan
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putting capital into dwac is gambling
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and not investing
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so to a certain degree this is very true
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this is not investing or at least not in
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the traditional sense but the truth is
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that over the past 12 months most of the
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high volume stocks traded on the market
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has been due to several reasons
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just look at how many stocks now are
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being bought in anticipation of a short
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squeeze or more recently a gamma squeeze
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or best of all
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the moass the mother of all short
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squeezes
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when we have stocks referred to as any
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of these we are no longer talking about
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investing at this point it has become
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gambling
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but the stock market has not changed
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overnight
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back in the 1960s the average holding
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period for the stocks at the start of
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the decade was around eight years by the
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year 2000 this was down to just over one
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year and when i was in university i
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remember the average time a share was
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held was down into the seconds
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and this article from february 2020 says
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that the average holding period for
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stocks on the london stock exchange is
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now about eight seconds describing
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stocks quite simply as a casino
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so the idea that buying dwac is gambling
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is correct
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but so are most of the most traded
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stocks in the world
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so this is nothing new this article then
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goes on to say that dwac's price and
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volume trends make the meme stock
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trading frenzies for gme and amc look
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mild i spoke about this in my previous
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video
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this does not make gme look mild
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nothing else has even come close to gme
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yet first of all dwac went from ten
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dollars up to one hundred and seventy
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dollars
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and then began to drop as trading was
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halted multiple times
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when we talk about gamma squeezes and
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the mother of all squeezes the gme is
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still number one
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dwac has not yet had another run-up
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comparing it to gme and saying that
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gamestop was mild
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gme stock went from under three dollars
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up to over
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483 dollars
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it spiked in january and in february
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before dropping to 40
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then back up again to 300 in march and
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june
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so to say the gme is mild in comparisons
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to dwac
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is 100 wrong
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what made gamestop so powerful of a
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movement
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was that not only did people see it as a
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short squeeze opportunity but gamestop
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represented a chance to unite and take
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on major hedge funds and everybody got
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behind that idea
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the power here is when there are
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millions of people doing this and this
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is exactly what made the likes of wall
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street bets so powerful over the past
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two years
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and the same can be said about dwac
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whereas gma was seen as the people
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versus hedge funds
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some people are seeing dwac as the
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people versus big tech but investors
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should be mindful
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that stocks can drop as fast and as far
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as they rise especially when they are
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not supported by fundamentals as we've
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seen already trump media and technology
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group plans to create a social network
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called truth social but also has plans
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for a news network that competes with
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the likes of cnn and i heard media
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a streaming service tmtg plus to go
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against netflix and disney and tmtg tech
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shack to go up against
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amazon web services google cloud and
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microsoft azure
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from an investor's point of view a few
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things need to be remembered here
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first of all breaking into these
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industries requires a clear disruptive
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business plan and large capital
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investments
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although dwac will have about 300
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million in cash this is still very small
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compared to the type of capital that
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these other companies have at their
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disposal
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and these things take time disney and
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amazon built their businesses over
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decades with billions of dollars of
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capital investment
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facebook was founded in 2004 nearly 20
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years ago
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amazon in 1994 nearly 30 years ago
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even disney was founded in 1923 so this
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is nearly 100 years ago so we need to be
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realistic as to what tmtg can actually
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achieve in the short to medium term
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which again in this case is still
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several years
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investors should note that other social
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media networks founded to compete with
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facebook and twitter in the wake of
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donald trump's ban from these platforms
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haven't been clear hits since returning
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to the apple app store in the summer
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parlor's user growth slowed
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significantly and getter was plagued
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by security breaches and fake accounts
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in its early days
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it's too early to tell if donald trump's
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association with truth social will help
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tmtg outperform previous social media
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startups but one thing is clear
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launching a social media company signing
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of millions of users and securing user
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data is no easy feat
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and one of the most high profile trump
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supporters to publicly invest in dwac
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representative marjorie taylor green one
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of donald trump's most vocal supporters
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bought as much as fifty thousand dollars
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worth
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of dwac
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in a filing the georgia republican
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disclosed that she bought between
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fifteen thousand and fifty thousand
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dollars
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in the company on friday but didn't
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specify the purchase price
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on the day the stock fell as low as 67
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before closing at 94 dollars
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this dock has attracted so much
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attention in the past week
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as well as being a potential target for
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the likes of wall street bets and retail
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investors this stock has also been the
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subject of several articles
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some of which are positive outlining a
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view to a possible one trillion dollar
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valuation in the future while other
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articles
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take a much more negative viewpoint
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seeing dwac as little more than retail
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investor gambling but other articles in
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recent days are taking a direct swipe
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at digital world acquisition corp itself
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and the key players in the deal
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donald trump and patrick orlando such as
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saying that donald trump's spac deal may
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have violated securities law
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or linking one of patrick orlando's
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backs with mismanaged trust funds if you
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would like me to talk about these
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reports in my next video then hit that
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like button and drop me a comment
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looking at trading view we can see the
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huge run-up that this stock had
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followed by a huge drop after reaching
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175 dollars
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it then dropped as low as 54 dollars
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before gaining back to the mid 70s
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midweek
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we can see here that from wednesday
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onwards dwac has been trading in this
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channel between 67 and 76 dollars
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hitting support and resistance several
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times
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offering the chance to swing trade
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multiple times per day with a possible
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12 percent gain per trade if times
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perfectly
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and as we can see these levels of
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support and resistance have been
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effective going back into last week 2 as
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indicated here with the blue and yellow
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arrows
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if we break out of this channel to the
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upside
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we could find another resistance level
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at 94
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which would be 39 upside from the
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current price while a downward breakout
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movement could find the next support
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level at 54.
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these levels are indicated here by the
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white lines
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and as we can see these levels were both
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tested over the past two weeks
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other stocks that i'm looking at right
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now and consider making a video about
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include remark holdings created
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and backed holdings
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if you would like a video on one of
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these stocks then drop a comment down
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below
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so guys that brings it to the end of the
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video if you've watched all the way
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through then please hit that like button
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it really helps the channel out a lot
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what do you think will happen here next
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week do you think the dwac
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will drop again
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or do you think that this will make
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another huge run
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and let me know what you think about
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wall street bets type of trading in the
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market of 2021
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is this a good or a bad thing
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drop me a comment and let me know what
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you think 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 update
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