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Stocks linked to Donald Trump, DWAC and Phunware, sink in trading


Donald Trump, former President of the United States, attends rally in Perry (Georgia), U.S. September 25, 2021.

Reuters| Reuters

Trump released a long statement on Tuesday about the plans for his social media apps and other elements of his new company, just an hour before trading opened.

Trump stated, “To combat Big Tech censorship we’re creating a platform called Truth Social.” We are welcoming people of all political views and from different perspectives to participate in this great American debate. This is what the country should be all about.

Trump stated that unlike the Big Tech platforms there would be no shadow-banning or throttling of data, nor demonetizing. He also said there wouldn’t be any manipulation with algorithmic algorithms to manipulate political opinion. We will not treat users as lab rats or call alternative viewpoints “disinformation” and we won’t be using them for social experiments.

He stated that the company will also launch an on-demand streaming video service, “that competes against the increasingly woke and politicized “entertainment” programming created by Big Tech companies and Big Media.

But Trump has a long history of over-promising on new businesses and those ventures failing.His biggest failures included several Atlantic City casinos, Trump Airlines and Trump University. He also lost a Trump mortgage firm, Trump steaks, and Trump University.

Trump has plans for a new social media app months after his ban. TwitterAnd FacebookPlease see the following: inciting the deadly Jan. 6 Capitol riot by his supporters.

Phunware also announced Tuesday that it would sell an additional 5.6 million shares at the “market offering” to bring the total number of shares outstanding to almost 90 million. The company made this statement in a regulatory filing Tuesday.

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The offering would raise up to $48.54 million for Phunware based on a price of $8.74 per share — nearly $4 more than the level that the stock was trading at early Tuesday.

In a filing with the Securities and Exchange Commission on Tuesday announcing the offering, Phunware said, “The trading price of our Common Stock has recently increased significantly, possibly due to recent revenue guidance, our acquisition of Lyte Technology Inc. and/or speculation regarding our ties to the Trump re-election campaign.”

Prior to last week’s rapid rally, the stock was only trading at 90 cents per share. 

DWAC stock still trades at $70/share despite the drop in its price. This is seven times more than what the SPAC IPO price was of $10.

Reddit’s WallStretBets chatroom continued to be heatedly debating DWAC Tuesday, with the ticker among the top five most talked about on the platform according to Quiver Quantitative.

A Tuesday blog post titled “How are my bag holders in $DWAC?” was one of the most commented on.