Digital World Acquisition Corp's shares surged about 60% to
$71.35, with more than 3.8 million shares changing hands by 6:30
a.m. ET, compared with its 10-day moving average volume of
145,766 shares.
The stock soared nearly five times in value in the previous
session on the news that Digital World would merge with Trump's
media company to create a social media app called TRUTH Social.
Data from brokerage Fidelity showed Digital World was the most
traded stock on its platform on Thursday, with buy orders
outnumbering sell 1.4-to-1.
Digital World was the most discussed stock on trading-focused
social media site Stocktwits, a platform commonly seen as a
measure of interest from retail investors. Message volumes on
Stocktwits related to the SPAC were up more than 9,000%.
"No matter your politics this stock will rip ... I'll start my
pick up at a meager 100 shares and then add to my position on
dips," a Reddit user wrote.
Hedge funds that invested in Digital World are set to make five
times their investment, regulatory filings showed, while Patrick
Orlando, who backed the SPAC is likely to see a $420 million
windfall from the surge in shares.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak
Dasgupta)
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