Blank check company Digital World Acquisition Corp. (DWAC) has no revenue history but incurred massive losses. The stock has been on a downward trajectory since 2021 when it announced a merger with former president Trump’s media company. The SEC and other regulators have been investigating the proposed merger for potential securities violations.
Recently, Trump has faced more legal issues over alleged payment to adult star Stormy Daniels. After the former president’s indictment, DWAC will likely remain a poor performer and should be avoided now due to its fundamental weakness and bleak growth outlook. In this article, I have discussed several reasons why investing in this stock could be risky.
