Stocks linked to Trump drop after former president touts social media site

Trump's announcement of details of his new social media endeavor did not lead to a rally by two stocks linked to the former president.

Arutz Sheva Staff ,

US President Donald Trump
US President Donald Trump
Official White House Photo by Shealah Craighead

Two stocks linked to Donald Trump plunged during Tuesday trading after the former president announced plans for one of the companies to launch his new social media venture and the other said it would offer additional shares to raise funds, CNBC reported.

SPAC Digital World Acquisition Corp. and Phunware both experienced large gains in their share prices last week, with SPAC gaining nearly 350 percent on the heels of the Trump social media platform deal.

However, this week after Trump revealed more detailed plans for “TRUTH Social,” created to “stand up to the tyranny of Big Tech," both stocks lost substantial value.

Trump said that the new company will be chaired by himself, adding that this “group’s mission is to create a rival to the liberal media consortium.”

“We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American president has been silenced,” said Trump referring to his indefinite ban from Twitter and Facebook.

In early Tuesday trading, SPAC's shares lost more than 20 percent of their value, while Phunware – a small advertising software start-up – plummeted more than 30 percent.

Shortly before trading opened on Tuesday, Trump issued a release detailing his plans for his new social media platform that will be launched by the firm.

“To take on Big Tech censorship, we are creating a ‘Big Tent’ platform: Truth Social,” Trump said. “We are inviting people of all political stripes, and all different viewpoints, to come and participate once again in the great American debate. That’s what our country is supposed to be about.”

He added: “Unlike with the Big Tech platforms, there will be no shadow-banning, throttling, demonetizing, or messing with algorithms for political manipulation. We will not be treating users like lab rats for social experiments, or labeling alternative views as ‘disinformation.’”

The company will also create a video streaming service “that competes with the increasingly ‘woke’ and politicized ‘entertainment’ programming created by Big Tech and Big Media players."