Shares of Phunware (PHUN) surged more than 1,000% early Friday, as a special-purpose acquisition company, or SPAC, called Digital World Acquisition Corp. DWAC, was revealed to be merging with an entity called Trump Media & Technology Group. Austin-based Phunware is an advertising startup that has been associated with former President Donald Trump’s 2020 presidential campaign, and appeared to be getting a lift from the DWAC SPAC deal, which apparently represents the former president’s latest attempt to launch a social-media platform. Meanwhile, shares of DWAC were up 190% on Friday, contributing to a 1,345% weekly gain for the entity.
Trump announced that he expects to upend Silicon Valley via a new app called TRUTH Social, which will be a property of the newly formed social-media company Trump Media & Technology Group. Digital World closed up 356.8% on Thursday, marking the best first day of trading ever by a SPAC, according to Dow Jones Market Data. Meanwhile, Phunware’s market value is just $116 million, FactSet data show, even with the surge in its stock on Friday.
Trump’s fans on social media have pumped the stock on Reddit and StockTwits, fueling heavy trading. On Thursday, the special-purpose acquisition company was the top purchase on Fidelity’s platform with about 55,000 buy orders from customers. That demand carried on Friday with more than 50,000 buy orders being registered on Fidelity’s platform, nearly double the buying seen in the second-most actively traded stock Phunware Inc., a newly crowned Meme stock.
The former president’s new enterprise will be in operation by the first quarter of 2023, according to a news release. It plans to start a social media company called Truth Social. The moves, if all goes according to plan, would occur well ahead of the 2023 midterm elections.
There is no confirmation that Phunware will work with Trump Media and Technology Group to help develop the Truth Social media app. There was no immediate response to a request for comment.
Phunware (PHUN) acquire gaming PC builder Lyte Technologies
Phunware, Inc., a fully-integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide, announced it has formally closed the acquisition of privately-held Lyte Technology, Inc., a fast-growing provider of high performance computer systems. The Company financed the closing consideration of $3.32 million with cash on-hand and unsecured, non-dilutive debt.
