Trump Media & Technology Group going public via SPAC merger was one of the biggest stock storylines of 2021. The company may be staying private a bit longer, with the SPAC seeking to take the company public failing to reach an extension on the vote. With the company no longer being a stock for fans of former President Donald Trump to invest in, here’s a look at some public companies and an ETF that Trump investors could explore.
What Happened: Digital World Acquisition Corporation DWAC faces the risk of liquidation, with not enough shareholders voting to extend the merger deadline for the company to reach a merger agreement. The current deadline is Sept. 8, 2022 to reach a deal, a date that can be extended to March by the company.
Digital World Acquisition is trying to get shareholders to extend the merger deadline by one year to Sept. 8, 2023.
Without the extension, the company’s deal to merge with Trump Media & Technology Group could face challenges, with several ongoing investigations delaying the deal going through.
Shareholders choosing not to extend the merger vote could see Digital World Acquisition pursue a different target or choose to liquidate. If the SPAC liquidates, the value of the stock will drop to $10 plus interest in the trust, significantly lower than the current share price.
Stock to Watch: Here’s a look at several stocks with links to Donald Trump that could see interest as investments in the DWAC SPAC fade away.
One stock that was jumping Tuesday that may see heavy interest from Donald Trump fans is CF Acquisition Corp VI CFVI, which is merging with Rumble. Similar to Truth Social, Rumble is a free speech centered social media platform.
Rumble also has a working relationship with Truth Social, partnering on its advertising platform.
Many of the politicians, journalists and citizens who have faced bans from YouTube have transitioned to using Rumble as their video platform of choice.
“Rumble is designed to be the rails and independent infrastructure that is immune to cancel culture,” Rumble founder and CEO Chris Pavlovski said. “We are a movement that does not stifle, censor or punish creativity and believe everyone benefits from access to a neutral network with diverse ideas and opinions.”
Trump is on Rumble and has used the platform to show videos from rallies.
Black Rock Coffee Company BRCC is a veteran-founded coffee company with a subscription plan and physical stores. The company went public via SPAC merger and plans to continue its growth though its direct-to-customer offering and additional physical “outposts” added. Prior to the SPAC merger, the company had revenue split 82% DTC, 16% wholesale and 2% outposts, a model it sees changing over time.
The company has received positive mention from several prominent Republican voices, including Donald Trump Jr, who also recently appeared on the company’s podcast.
“Great coffee, great guys and great Americans,” Donald Trump Jr previously said about the company.
Another stock that has soared in connection to Donald Trump is Phunware Inc PHUN. The company has been flagged as a Trump sensitive stock by Benzinga Pro, meaning it often moves in reaction to major news on the former president.
Phunware, which designs enterprise software for companies, previously worked with Trump to design the official app for his 2020 presidential campaign.
While Phunware doesn’t have a confirmed connection to Truth Social or current Trump products, it could in the future and could be a stock that sees interest from investors looking for exposure to the former president.
Launched in 2017, the Point Bridge America First ETF MAGA may not be familiar to fans of Donald Trump or Republican investors, but its ticker of MAGA should signal who it is trying to appeal to. MAGA, which is an acronym for “make America great again” became a slogan and rally cry for Donald Trump in the 2020 presidential election.
The ETF tracks companies in the S&P 500 that make donations to the Republican Party.
Despite Trump losing the 2020 election, the ETF is still going and has $15 million in assets. The ETF is up 2% over the last year and up 48% over the last three years.
“The goal for this ETF was to have something for conservatives to invest in that hasn’t been out there,” ETF creator Hal Lambert said.
Photo: Courtesy of Gage Skidmore on flickr
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