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The Phunware (PHUN) Stock Price Surged 25.4% on Trump-Twitter Ties

Simon Mugo trader
Updated 11 Jul 2022

Trade PHUN stock Your capital is at risk

Key points:

  • Phunware (PHUN) stock price surged 25.4% on Trump’s Twitter ties.
  • Will the stock continue rallying, and is it a buy?
  • Read on to find out.

The Phunware Inc (NASDAQ: PHUN) stock price surged 25.4% after Elon Musk wrote to the Securities and Exchange Commission (SEC), scrapping his offer to buy Twitter. PHUN stock rallied higher, boosted by the pre-market rally in Digital World Acquisition (DWAC) stock, which is associated with Donald Trump.

Musk was planning to unban former President Donald Trump, who was permanently banned from Twitter in January 2021 during the final days of his term as President. Trump has said he will be running for President in 2024 against Joe Biden, the incumbent, but his candidacy is far from guaranteed.

The former President is currently facing a public inquiry into his role in the January 6, 2021, breach of the congress building with his tweet, ‘Be there, will be wild!’ being squarely blamed for inciting the violent riots.

Trump has since created his own social media platform known as Truth Social to rival Twitter, which is why many viewed his expected return to Twitter as a move that could dilute the potential attractiveness of his app.

However, now that Elon Musk wants to end his bid for Twitter, with the board chair planning to sue him to ensure he keeps his end of the deal, Donald Trump may remain banned from the platform and might need to use his Truth Social app for his 2024 presidential campaign if he is still in the running at the time.

DWAC stock was also up at writing since it tends to move in tandem with PHUN since both companies are associated with Trump. There is much to report on, and my colleague has covered the recent developments regarding Twitter’s buyout here.

For those wondering whether I would recommend buying PHUN stock. The short answer is that I wouldn’t. I tend to avoid meme stocks, and I would encourage most people to do the same. However, PHUN stock is down 56.4% so far this year and may be attractive to those interested in betting on a future spike higher,

*This is not investment advice. Always do your due diligence before making investment decisions.

Phunware stock price.

Phunware stock price 11-07-2022
Source: Tradingview

Phunware stock price surged 25.4% to trade at $1.53, rising from Friday’s closing price of $1.22.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading