Phunware Stock (PHUN): Why The Price Surged Today

By Amit Chowdhry ● Dec 8, 2021
  • The stock price of Phunware Inc (NASDAQ: PHUN) increased by 21.05% today. This is why it happened.

The stock price of Phunware Inc (NASDAQ: PHUN) increased by 21.05% today. The surge in price appears to be driven by a sympathy play associated with Digital World Acquisition Corp (NASDAQ: DWAC). Digital World Acquisition Corp increased by 28.1% today.

Digital World Acquisition — which is a special purpose acquisition company (SPAC) that is committed to merging with former President Donald Trump’s social media company Trump Media & Technology Group — has been seeing some major momentum as the stock price increased by over 50% since November 23.

One of the biggest catalysts that sent the stock price up during that time was Trump Media & Technology Group and DWAC reaching an agreement to obtain $1 billion in committed capital from a diverse group of institutional investors when the merger is consummated. The investors in this (private investment in public equity) PIPE were undisclosed. On Monday, the company also announced that Republican Rep. Devin Nunes would be resigning from Congress at the end of the year in order to become CEO of Trump Media & Technology Group.

Trump Media & Technology Group’s flagship product currently being developed is a social platform called TRUTH Social. Early prototypes of TRUTH Social show that it looks similar to a Twitter feed with an emphasis on right-leaning content.

The catalyst for today appears to be discussions about the hypothetical benefits of a merger between Trump Media & Technology Group and Parler. Parler is a social network that has a significant user base of Donald Trump supporters and conservatives. A profile of former First Lady Melania Trump was created on Parler yesterday fueled speculation about a hypothetical merger with Parler.

Many investors are assuming that Phunware will be involved in the development of TRUTH Social. 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. But it has not been confirmed whether Phunware will be involved in this project. Either way — whenever the price of DWAC goes up, Phunware also seems to go up as well.

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