Stocks In The News: DWAC, RDBX, MSTR

1:56 pm Monday, June 13th, 2022

Digital World Acquisition Corp (NASDAQ:DWAC) may be about to see things come full circle. The blank-check partner of Trump Media and Technology Group (TMTG), known for its social media platform Truth Social, saw shares fall when it received a subpoena from the Securities and Exchange Commission (SEC) late in 2021. While DWAC stock would ultimately recover, news of the probe didn’t help. Now, months after Truth Social’s launch, shares are falling again on news that the agency has expanded its investigation. DWAC stock is plunging today after a week of remaining mostly stagnant. Despite a slight rally as markets opened, it reversed direction just as quickly and hasn’t made progress since. As of this writing, it is down more than 15% for the morning and shows no signs of a rebound.

Redbox (NASDAQ:RDBX) stock is rising higher on Monday despite the market falling as volatility continues to be a problem alongside inflation. So what’s keeping shares of RDBX stock from dropping alongside other shares today? It looks like interest from retail traders is what has the company’s shares from falling. Redbox has recently joined the ranks of meme stocks and that means it’s subject to volatility. Adding into that is short interest in RDBX stock. Many day traders are looking to it as a potential short-squeeze target. This has interest in the stock rising and falling as investors come together in attempts to pump it higher.

MicroStrategy (NASDAQ:MSTR) stock is plummeting lower by about 25% in correlation with the price of Bitcoin (BTC-USD). The price of a Bitcoin has fallen by over 20% in the past week and is now trading below $24,000 for the first time in 18 months. At a price of about $23,000, MicroStrategy would be down over $1 billion on its Bitcoin position. Contributing to Bitcoin’s decline is a suspension of withdrawals from cryptocurrency brokerage Celsius. The company announced yesterday that it was “pausing all withdrawals, Swap, and transfers between accounts” in order to act “in the interest of our community.” Celsius attributed the withdrawal suspension to “extreme market conditions.”