Beware: This SPAC Bubble Stock Could Burst in 2022
Investors saw several highly speculative investments go to the moon in early 2021, only to crash back to earth over the past several months. Some of these players were pre-revenue and unprofitable companies going public via special purpose acquisition companies (SPACs).
Former President Donald Trump is starting a social media network and streaming service called Truth Social and TMTG+, respectively, taking the companies public under Trump Media & Technology Group in a SPAC merger with Digital World Acquisition (NASDAQ: DWAC). Investors are gobbling up shares, so here is what you need to know before buying the stock.
Trump's headbutting with large media companies has been well-publicized, including his banishment from social media platforms like Twitter and Facebook (owned by Meta Platforms). I think Trump's logic behind this business venture is simple: If tech companies take his social platforms away, he'll start his own.
Source Fool.com
