Why Digital World Acquisition & Phunware Stocks Took The Market By Storm?

Why Digital World Acquisition & Phunware Stocks Took The Market By Storm?

Phunware Inc stock on Friday soared unusually high unanimously with the stock of Digital World Acquisition Corp  as traders circulated an article published in May 2020 that talks about the partnership deal between Phunware and American Made Media Consultants for “the development, launch and ongoing management of the Trump-Pence 2020 Reelection Campaign’s mobile application portfolio for Apple iOS and Google Android smartphones”, reported Benzinga. 

The mobile application was launched with an intent to “let people engage with the campaign from their couch, or wherever they are,” as Brad Parscale, Trump’s presidential campaign manager explains, through:

  • Dedicated news feed to read articles, watch videos and stay up-to-date with Trump’s social feed
  • Sign-up tool to volunteer, fundraise and help Trump’s reelection campaign
  • Scheduling tool to discover and register for local, state and national events
  • Gamified loyalty system to accumulate reward points, including redemption capabilities for exclusive merchandise and upgraded experiences
  • Livestream events for virtual engagement
  • Mobile ticketing for in-person events

“Our software provides the Trump-Pence team with powerful mobile tools for their high profile reelection campaign, allowing seamless one-to-one user engagement and interactions on a reliable and proven global platform,” Alan S. Knitowski, president, CEO and co-founder of Phunware, said in a statement.

Digital World Acquisition Corp ( DWAC)  surged nearly 121% on Friday, whereas on 21 October following the declaration that the SPAC is taking former President Donald Trump’s planned social media platform public, the stock climbed 356.83%.

The planned merger of Trump Media & Technology Group and Digital World Acquisition Corp. would have “an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination,” the press release.

Trump Media & Technology Group said it is going to launch a new social network called TRUTH Social.

President Donald J. Trump, the Chairman of TMTG, stated, “I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech…” “I am excited to send out my first TRUTH on TRUTH Social very soon. TMTG was founded with a mission to give a voice to all. I’m excited to soon begin sharing my thoughts on TRUTH Social and to fight back against Big Tech. Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!”

Patrick F. Orlando, Chairman/CEO of DWAC, in a statement, said, “Digital World was formed to create public shareholder value and we believe that TMTG is one of the most promising business combination partners to fulfil that purpose. DWAC currently has $293 Million in trust, assuming minimal redemptions, which can fuel TMTG’s scale-up, including providing world class-leading technology services to build strong and secure social networks and diverse media offerings.”

Phunware, Austin, Texas-based small-cap software developer, rallied a gigantic 471% to $8.74 apiece on the last trading day of the week, attracting gains this week to nearly 750%. There was hardly any indication that DWAC and Phunware have a business relationship.

With this, a probability arose that Phunware could be involved with the development of the new social media platform.

Why Digital World Acquisition & Phunware Stocks Took The Market By Storm?

The Phunware stock took the top position on the dashboard of Quantale. The social engagement for the stock amongst the users of Twitter and Reddit spiked more than 950% on Thursday, and eventually cooled down on Friday, as stock activity fell down to nearly 70%.  

On the other hand, on Friday, a total of 649.79 million shares of the stock exchanged hands, 636.67 million above the average of 13.12 million.