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The listed company Digital World Acquisition Corp (DWAC) had a wild rise of almost 400 percent after news that they are merging with former President Donald Trump’s new social media.
Digital World Acquisition is a so-called «spac». It stands for “Special Purpose Acquisition Company” and means that empty, listed companies are filled with capital, before they buy up and merge with private companies.
Yesterday, the Trump Media & Technology Group announced that they will merge with DWAC with the goal of making the former a listed company. According to CNBC, Trump will launch a social platform called “TRUTH Social”. The platform will “stand up to the Big Tech tyranny.”
The planned merger values Trump Media & Technology Group, well and good according to the company’s own press release, at up to NOK 14.2 billion.
Trump was thrown out of Twitter and Facebook in the wake of the storming of the US Congress, January 6 this year.
Good day for stock market debutant
Stock market debutant WeWork, which, like the Trump company, went public with a “spac”, rose 13.5 percent today. According to CNBC, the company was valued at NOK 75 billion earlier this year – far less than the valuation of NOK 393 billion the company received from SoftBank Group in 2019.
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IBM became today’s biggest losers on Wall Street. The company falls over almost 10 percent after weak quarterly results.
Things went better for Tesla, which presented good quarterly results yesterday. The company rose three percent. Yesterday, Telsa was able to report revenue growth of almost five billion dollars compared with the same quarter in 2020.
The three leading indices on Wall Street ended as follows:
- The broad S&P 500 index closed up 0.30 percent.
- The industry-heavy Dow Jones index closed down 0.02 percent.
- The Nasdaq technology index closed up 0.62 percent.
The upturn for the S&P 500 set a record high for the broad index. Yesterday, the Dow Jones was very close to a new high at closing time.
Snap plunges in aftermarket
Snap plunges 25 percent in after-sales after disappointing quarterly results. The company reports a turnover of just under NOK 9 billion – an increase of 57 percent.
It is still weaker than expected. The company falls more than 25 percent in aftermarket.
The adjusted operating profit before depreciation and amortization ended at NOK 1.4 billion. Up from NOK 986 million in the same quarter last year.
The company states that they had 306 million daily users in Q3 – an increase of 57 million daily users from the same time in 2020. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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