“I LOVE TRUTH SOCIAL,” says former president Donald Trump, but there’s not much evidence to suggest investors should love the publicly traded entity tied to the social media site at its current valuation, too.
Shares of the blank-check firm intending to merge with Donald Trump’s social media venture have outgained almost every major U.S. stock so far this year.
Even after the recent recovery, the market values Digital World at about $870 million, a far cry from its peak valuation of almost $4 billion achieved in early 2022 at the height of the SPAC craze.
Shares of Digital World Acquisition Corp. are down more than 80% from last spring as its merger with Truth Social’s parent company faces increased hiccups.