Why Shares of Digital World Acquisition and Phunware Crashed Today

Digital World Acquisition (NASDAQ: DWAC) and Phunware (NASDAQ: PHUN) both saw their stock prices rocket over 1,000% at one point last week, as investors' excitement for the special purpose acquisition company (SPAC) and advertising software provider that are linked to former President Donald Trump reached a fever pitch.

But investors' views toward the companies soured on Tuesday. By the close of trading, shares of Phunware and Digital World Acquisition were down 39% and 30%, respectively. 

The decline in Digital World Acquisition's stock price appears to have been sparked by comments made by Trump before the market opened. Last week, investors cheered when the SPAC announced its plan to merge with Trump Media & Technology Group. But when the former president shared more details of his plans to build a new social network that would try to rival Facebook and Twitter and a video-streaming service to challenge Netflix, that excitement seemed to wane.

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Source Fool.com