DWAC stands for Digital World Acquisition Corp, a type of SPAC that raises money from investors to buy another company.
In DWAC’s case, the big news was its proposed merger with Trump Media & Technology Group (TMTG), founded by former US President Donald Trump. DWAC’s stock price soared in late 2021, but the deal has faced delays and legal challenges.
So, what’s next for DWAC stock price prediction in 2025 and beyond?
If you want to know about it in detail, keep reading as you will explore what analysts and technical indicators say about its future.
About DWAC
Before we move further, let’s introduce DWAC to you in detail.
Digital World Acquisition Corp. (DWAC) was a special-purpose acquisition company (SPAC) founded in 2021. It gained prominence after announcing a proposed merger with Trump Media & Technology Group (TMTG), the owner of Truth Social. DWAC began trading on the Nasdaq in September 2021, selling 25 million shares in its IPO.
The company faced several challenges, including SEC and FINRA investigations into pre-merger communications and stock trading. DWAC secured multiple extensions from shareholders to close the deal and agreed to pay an $18 million fine to settle with the SEC in 2023.
Despite these hurdles, DWAC shareholders approved the merger with TMTG on March 22, 2024. This transformative deal marked the completion of DWAC’s primary objective as a SPAC, turning it from a shell company into a publicly traded entity associated with former President Donald Trump’s media venture.
Historical Performance and Recent Events
Now that you know about DWAC, let’s dive into its history and recent events:
IPO Journey
DWAC’s story began with its initial public offering (IPO) in September 2021. Let’s rewind and understand the key milestones:
IPO Pricing and Listing
- On September 2, 2021, DWAC priced its IPO at $10.00 per unit, raising $250 million by issuing 25 million units.
- Each unit comprised one share of DWAC’s Class A common stock and one-half of one redeemable warrant.
- The units were listed on the Nasdaq Global Market under the “DWACU.”
- Once the securities comprising the units began separate trading, the shares of Class A common stock and warrants were listed under the symbols “DWAC” and “DWACW,” respectively.
Merger Buzz
- In October 2021, DWAC announced a proposed merger agreement with Trump Media & Technology Group (TMTG).
- The merger aimed to take TMTG public through DWAC, creating a new force in media and technology.
Merger Impact
Stock Surge and Symbol Change
- On March 25, 2024, DWAC’s merger with TMTG officially closed.
- The company’s name changed to Trump Media & Technology Group Corp., and its stock began trading under the ticker symbol “DJT.”
- DWAC’s stock soared 35.2% on the day of the ticker-symbol change, reflecting investor enthusiasm.
- Trading volume surged, indicating heightened interest in the newly formed Trump Media.
Trump’s Stake Value Boost
- Former President Donald Trump’s stake in the post-merger company got a $1.02 billion boost.
- Based on the closing price, his holdings would be valued at $3.93 billion.
- TMTG’s CEO, Devin Nunes, emphasized the mission of reclaiming the internet from big tech censors.
Analyst Price Targets
Analysts project a positive outlook for DWAC, so let’s take a look at it:
- Average Analyst Price Target (July 2024): The consensus among analysts is that DWAC is expected to reach an average price of $49.95 per share by July 14. This represents a positive outlook, with a potential increase from the current price of $0.00.
- Highest Analyst Price Target: The most optimistic projection sets the target at $46.83.
- Lowest Analyst Price Target: The most conservative estimate suggests a target of $8.51.
Technical Analysis According to Key Indicators
Let’s decode the technical signals:
Relative Strength Index (RSI)
- The RSI tracks the speed of price changes and helps identify overbought or oversold conditions.
- DWAC’s RSI value of 27.90 indicates that the stock is oversold, suggesting a potential rebound.
- Traders often look for RSI values below 30 as a buying opportunity.
Stochastic Oscillator (STOCH)
- The STOCH measures the momentum of price movements.
- With a balanced sentiment (STOCH value of 52.55), DWAC is neither overbought nor oversold.
- Traders use STOCH crossovers and divergences to identify potential trend reversals.
Stochastic Relative Strength Index (STOCHRSI)
- The STOCHRSI combines RSI and STOCH to enhance sensitivity.
- An STOCHRSI value of 100.00 indicates extreme oversold conditions.
- Traders watch for STOCHRSI crossovers and divergences for potential trading signals.
Average Directional Index (ADX)
- The ADX measures the strength of a trend.
- DWAC’s ADX value of 23.59 suggests a moderate trend.
- Traders use ADX levels to assess trend strength and potential trend changes.
Commodity Channel Index (CCI)
- The CCI identifies deviations from an asset’s moving average price.
- With a CCI value of -433.24, DWAC is oversold.
- Traders look for CCI crossovers and extreme values for potential trading opportunities.
Long-Term Price Forecast
Now that your wait is over let’s look at the DWAC stock price prediction for 2025 and beyond.
2025: Average Price Estimate
- Average Price: By 2025, DWAC is estimated to reach an average price of $8.7219.
- High Prediction: The most optimistic projection sets the price at $17.30.
- Low Estimate: The conservative estimate hovers around $0.1475.
2030: Potential Price
- Potential Price: Looking ahead to 2030, DWAC could reach a price of $109.86.
- This projection factors in various market dynamics, including the impact of the merger with Trump Media & Technology Group (TMTG).
2040 and Beyond
- Estimated Price (2040): By 2040, DWAC’s price is estimated to be $110.34.
- Projected Price (2050): Further into the future, the projection reaches $388.82.
DWAC’s journey has been eventful, from its initial rise as a SPAC to its recent merger with TMTG. While analyst forecasts paint a positive picture for DWAC stock price prediction in 2025 and beyond, long-term projections have inherent uncertainties.
Conclusion
Technical indicators suggest a potential rebound in the short term, but the overall market sentiment and TMTG’s performance will significantly influence DWAC’s future price movement.
For investors considering DWAC, thorough research and a clear understanding of risk tolerance are crucial. Remember, past performance is not always indicative of future results.
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