Key points:
- Phunware rallied premarket as Trump's ‘TRUTH Social' hits the App store
- The cloud platform is linked with DWAC following a partnership for the Trump 2020 campaign
- Could the sentimental link bring problems for Phunware should something go wrong?
Before settling slightly with Tuesday’s market open; Phunware (NASDAQ: PHUN) rallied up and over 30% in premarket trading. Whilst no direct company news spurred the rally – it didn’t need to – as Phunware is still tied to gains from Trump’s DWAC, which rallied over 50% this morning as Trump’s ‘TRUTH Social’ launched yesterday on the app store.
The widely anticipated, contentious ‘TRUTH Social” marks Trump’s return to social media publicity since his Twitter ban following the Capitol riots. The free app quickly rose to number one amongst social networking in the Apple App Store.
What does this have to do with Phunware? Well, it seems the two are perpetually linked after Phunware’s involvement with American Made Media Consultants in the development of the Trump 2020 App. Since then, Phunware stock has followed in the smoke trails of DWAC since around October, and today was no different.
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To some investors, particularly those in tune with DWAC, Phunware isn’t much more than the company that made the Trump 2020 App. However, Phunware provides products, solutions, and data for numerous global brands through its fully-integrated enterprise mobile cloud platform.
This being said, I can’t help but wonder whether its sentimental link to DWAC is anything but trouble. Should DWAC see a downturn, or should TRUTH run into problems down the line – Phunware appears at risk. Should DWAC continue to attract buyers, there is no reason that Phunware won’t tag along just a few steps behind. Albeit, Phunware is a healthy, forward-thinking company; I hope any negative impact from ties to DWAC is limited. PHUN stock is currently trading with a daily gain of 2.5%.