We’ve seen a surge in trader activity over the past couple of days. Ever since Donald Trump’s social media enterprise, Truth Social, went public on Thursday via a special-purpose acquisition company, traders have jumped on the chance to drive up the company’s stock price. We’ve since seen this same frenzy migrate over into other companies associated with Trump in the past. One of those was Phunware (NASDAQ: PHUN), which skyrocketed on Friday and isn’t stopping.
Phunware is a tiny software company that has been losing money for a few years now. The company, which went public through its own SPAC back in 2009, had since made a name for itself back in 2018/2019 when the software company did work for the Trump/Pence election campaign.
At the time, Phunware received over $3 million from Trump’s former campaign manager, which helped push share prices up from $10 per share to over $300 in around a year. Just six months later, however, shares were back down to $6. Shortly after, the company faced potential delisting from the Nasdaq, while the business struggled to acquire lending from financial institutions, which were wary of Phunware’s ongoing losses.
Given Phunware’s past involvement with Trump and his political campaigns, traders figured Phunware might become involved with the Truth social network. That’s the main reason why prices skyrocketed on Friday, with there being no other real catalyst for this move. Shares were up as much as 1,000% on Friday, although they’ve now settled at a 500% at the moment.
Besides Phunware, Digital World Acquisition (NASDAQ: DWAC), otherwise known as the Trump SPAC, shot up another 105% on Friday as investors continued to jump on the stock. In a statement, the company said that its “mission is to create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.”
As an aftereffect, this speculative fervor has helped revive interest in the old-school meme stocks, which died down in popularity as the year went on. This includes companies like AMC and GameStop, which rose a bit on Friday.
We generally don’t see stocks like these keep rising this much for this long. However, since this is the former President we are talking about, it’s possible that prices will keep going up. However, sooner or later, we are going to see a correction of some kind, as traders decide to sell while riding high to lock in their gains.
In contrast, shares of social media giants aren’t really reacting to all this news. Instead, shareholders were more worried about the changes to the iPhone’s privacy settings, making it harder for advertisers to find information about their users. This has already impacted companies like Snap (NASDAQ: SNAP), with shareholders worrying how this will impact Facebook, Twitter, and other similar businesses.
Phunware Company Profile
Phunware Inc is a software company. It is a Multiscreen as a Service (MaaS) integrated enterprise software platform for mobile that provides companies with the products, solutions and data and services necessary to engage, manage and monetize its mobile application audiences. – Warrior Trading News