After Trump's arch rival Ron de Santis announced his withdrawal from the 2024 presidential election over the weekend, Trump's position as the Republican presidential candidate is almost within reach.
The news of De Santis withdrawing from the election also boosted a group of "Trump concept stocks" to soar on Monday, indicating a significant increase in market confidence in Trump's prospects of winning the party's primary, which some investors have already hyped up.
Trump concept stocks are being hyped up
On Sunday Eastern Time, Florida Governor De Santis announced a halt to campaign activities and instead supported Trump as the Republican presidential candidate. This means that former South Carolina Governor Nikki Haley is now the last obstacle for Trump to win the party's primary.
And January 23rd Eastern Time was the crucial New Hampshire primary. Compared to the previous state of Iowa, there are more independent voters in the state, and theoretically, Nikki Haley has a higher support rate among independent voters. If Trump's election performance in the state remains strong, it basically means he has a clear victory in the Republican primary.
Moreover, his previous opponent De Santis chose to support Trump instead of Nicky Haley, which increased Trump's chances of winning by a few points.
As market confidence in Trump winning the primary increased, the stock price of Shell Company Digital World Acquisition (DWAC. US) surged 88% to $49.69 on Monday Eastern Time, reaching its highest level in 21 months. The company is a shell company planned to merge and go public on Trump's self owned social media platform SocialTruth.
With Trump's sustained high approval ratings in polls and the growing momentum of becoming a Republican candidate, DWAC's stock price has more than doubled in the past five trading days.
DWAC's stock price trend over the past five years
Meanwhile, the stock price of Rumble, a video sharing platform popular among conservatives in the United States, rose 36% on Monday to $4.89, returning to a nearly month high. The company provides video and streaming services to Truth Social.
Software developer Phunware's stock price rose 42% to 36 cents as the company was hired by Trump's 2020 presidential campaign team to develop mobile applications.
DWAC plans to complete the merger as early as Q1 of this year
In 2021, Trump announced plans to establish his own social media platform "TrustSocial" due to being banned by multiple social media platforms, and plans to go public through SPAC company DWAC. DWAC was boosted by this news and closed up 356.83% and 285% for two consecutive days.
However, this merger and listing plan was repeatedly delayed, causing the company's stock price to fluctuate and fall again and again. As of now, the company's stock price is still at a halving level compared to its peak level in March 2022.
The company announced last month that it expects to complete its merger with Trump Media and Information Group (TMTG) as early as the first quarter of this year.
After the stock price surged on Monday, DWAC's market value reached $1.5 billion, Rumble's market value was $1.3 billion, and Phunware's market value was $121 million.
On January 6, 2021, supporters of Trump attacked the United States Capitol building. This incident also led to Trump being banned by the Twitter platform.
Afterwards, the Trump team developed the social media platform Truth Social, which also became a gathering place for Trump supporters.
However, a few months after Twitter's new owner Elon Musk lifted the ban, Trump returned to Twitter (now X) in August last year.
