PHUN Stock: Why The Price Is Surging Today

By Amit Chowdhry ● Oct 22, 2021
  • The stock price of Phunware Inc (NASDAQ: PHUN) increased by over 180% pre-market today. This is why it happened.

The stock price of Phunware Inc (NASDAQ: PHUN) increased by over 180% pre-market today. There are no company-specific reports today driving the stock price up so it appears there are external factors at play.

In this case, it appears that there is a sympathy play associated with Digital World Acquisition Corp (NASDAQ: DWAC). Trump Media & Technology Group is planning to go public through a SPAC merger with Digital World Acquisition. The goal of Trump Media & Technology Group is to create a rival to the “liberal media consortium” and fight back against the “Big Tech companies of Silicon Valley.” Following this announcement, the stock price of DWAC increased by 356.83% and it is up by more than 60% pre-market today. 

What does this have to do with Phunware?

Many investors are assuming that Phunware will be involved in the development of the technology platform associated with Trump Media & Technology Group. For Trump’s 2020 campaign app, Phunware – a Texas-based software development company – had partnered with American Made Media Consultants to develop The Official Trump 2020 App. 

Is it possible that Phunware could be tapped for assisting with the development of a platform Trump Media & Technology Group? Maybe. Has it been confirmed? No. 

Acquisition Of Lyte Technology

It is also worth mentioning that Phunware announced earlier this week that it acquired Lyte Technology, a rapidly growing provider of high-performance computer systems. Phunware financed the closing consideration of $3.32 million with cash on hand and unsecured non-dilutive debt.

Lyte is a profitable and rapidly-growing system integrator that specializes in marketing and distributing custom, high-end computer systems off-the-shelf with advanced graphic processing units for gaming, streaming, and cryptocurrency mining.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.