Phunware Inc (NASDAQ: PHUN) stock rallied 314.38% premarket despite not making any announcements today, in a rally associated mainly with Trump’s new social media platform launched two days ago.
The rally in Phunware stock is correlated to the 356.83% rally witnessed in Digital World Acquisition Corp (DWAC) stock price, which we covered yesterday.
Investors have flocked to Phunware because the former president used the company to design and develop the official Trump 2020 app.
Although neither firm has confirmed this assumption, many speculate that the Trump team could use the same company to build out its social media platform.
Phunware is a pretty reliable company that has carved a niche for itself as a developer of mobile applications, location tracking services, blockchain systems, and advertising software programs. The company was founded in 2009 and is headquartered in Texas.
Today’s rally is a pretty strong sign that investors expect Phunware to work with the Trump team and DWAC on the social media platform. Therefore, we could get a massive crash if the two companies do not work together as expected.
Investors who have missed out on today’s rally should wait for confirmation of the deal between the two companies before jumping in.
Even then, I would only jump in on a significant outback, given that today’s rally has created a parabolic shape, which is typically followed by a substantial pullback.
Phunware recently announced that it had acquired Lyte Technology, a company that provides high-performance computer systems in a rapid growth phase.
The acquisition gives Phunware access to a whole new industry segment as a supplier of high-end computer systems.
The computer systems typically have advanced graphic processing units used by gamers, streaming services customers and crypto miners.
I would not buy Phunware shares at current prices but might be interested in getting in once we get a significant pullback.
*This is not investment advice. Always do your due diligence before making investment decisions.
Phunware stock price.
Phunware stock price had risen 314.38% to trade at $6.34 premarket, rising from Thursday’s closing price of $1.53.
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