Phunware (PHUN) stock closes up 471% on Trump Truth Social network rumor
Yesterday's DWAC news wasn't absurd enough, so we are back to break down another 'totally rational' move in the stock market.
The stock market has mercifully come to a close for the week, but I thought I would drop by with another high-quality financial news story before I head off to the business cave for the weekend. Today, shares of Phunware closed up 471% on a rumor of a potential relationship with the newly-formed Trump Media & Technology Group.
Today's massive run in shares of Phunware (PHUN) had shares soaring as high as $24.04/share before dropping back down below $7/share in after-hours trading. The stock closed at a $1.53/share price yesterday, so today's move has drawn the attention of many traders and investors. We previously reported on the massive run in Digital World Acquisition Corp (DWAC) yesterday on news of a merger with the newly-formed Trump Media & Technology Group, and that stock kept running today, closing up 107% on the day. It appears that some more ravenous momentum traders turned their sights onto PHUN today when a rumor began circulating that Phunware, an advertising startup firm that has been previously associated with the Trump presidential campaign, would be working with TMTG on their Truth Social network app.
Phunware was founded in 2009 and is based in Austin, Texas. The company provides integrated software platforms to help mobile apps with monetization. Shares of both DWAC and PHUN ran wild while many other social media companies' stocks took a hit today when Snap, parent company of Snapchat, said that Apple's recent iOS 15 cross-app tracking changes have begun to affect advertising revenues. At one point today, shares of Phunware were up over 1000% on a rumor. Just a rumor. Totally rational market. Nothing to see here.
It's not all kitten farts and gumdrops for the new Truth Social network platform. The Beta has already been infiltrated by trolls who attempted to park Trump-related usernames, and the app itself is already in breach of the Mastodon TOS.
"The more it goes up, the less likelihood Donald Trump is running for president in 2024. I'm rooting for that SPAC. I hope that thing is a 10-1 move," @Scaramucci weighs in on his former boss's SPAC $DWAC pic.twitter.com/EemUMoeW7W
— Squawk Box (@SquawkCNBC) October 22, 2021
Trading on shares of both PHUN and DWAC were halted several times today due to volatility triggers, with both stocks closing way off of their intraday highs. These two companies certainly appear to be meme stocks for Trump sympathizers. One former Trump administration official, Anthony Scaramucci, actually said that he hopes shares of DWAC continue to head to the moon. "The more it goes up, the less likelihood Donald Trump is running for president in 2024," said the former White House Communications Director in an interview with CNBC.
Today's massively volatile swings in shares of both Phunware and DWAC highlight the breakneck pace of risk-taking found in the broader investment market in 2021. From meme stocks, to NFTS, to high-flying cryptocurrencies, to bank shares hitting all-time highs, this market is showing the signs of irrational exuberance seen in bubbles. No, not calling a top here, but it is hard to look at the current state of investing and not shake my head in disbelief.
What do you think of today's volatile moves in PHUN and DWAC? Did you jump into the trades? Do you think investing is dumb and the market is a rigged game? Are you just trying to get home to watch Dune? Let us know in the Shacknews Chatty comments thread below. We really want to hear your opinion.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
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