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The SPAC targeting Trump’s media firm falls for a 2nd day as retail interest wanes and traders shift focus to Bakkt and Tesla

The WallStreetBets page seen with Reddit logo. Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images

  • Retail trader interest in Trump’s new media company slipped Tuesday.
  • The retail crowd turned their attention to crypto exchange Bakkt Holdings and Tesla.
  • Tesla hit a $1 trillion market cap, and Bakkt scored a deal with Mastercard and Fiserv.

Digital World Acquisition Corp. sltock slumped for a second day in a row as retail traders hyped about Donald Trump’s new media company shift their attention up-and-coming crypto exchange Bakkt Holdings and EV-maker Tesla.

Digital World Acquisition Corp., a blank-check company, turned into a retail-trader favorite last week as it soared to eye-watering heights after announcing it would take the former president’s new media business public. After hitting triple digits last week, the stock has declined 30% in two days, trading at $67.41 at 1:35 a.m ET. The rally has garnered short-seller attention, with Iceberg Research announcing on Twitter Monday it was betting against the SPAC.

Data from Fidelity shows the number of retail sell orders for the stock is outweighing the number of buys. It has also been knocked from its perch at the top of the brokerage’s most traded stocks among customers, with the top two spots on Tuesdy held by Bakkt Holdings and Tesla.

Bakkt Holdings stock has doubled in value, after announcing a deal on Monday with Mastercard and payment processor Fiserv to enable cryptocurrency transactions for its merchants. The company, which went public with a SPAC earlier this month, describes itself as a “platform that enables consumers to buy, sell, send and spend a range of digital assets.” Bakkt shares slumped Tuesday but remained at elevated levels.

Tesla also got the attention of retail traders after hitting a $1 trillion market capitalization. The EV-maker run by Elon Musk became the fastest company ever to hit the trillion-dollar mark after Hertz announced it acquired 100,000 Model 3 vehicles. It was the second-most traded stock Tuesday, Fidelity retail data showed.

Discussions about the EV-maker surged on subreddit Wall Street Bets with more than 1,000 mentions, according to Quiver Quantitative data, making it the most discussed stock on Monday as Digital World Acquisition Corp. slipped to the No. 3 slot.

On the Stocks subreddit, one post about Tesla hitting the valuation milestone received more than 5,000 upvotes. “It took tech companies decades and many many successful products to reach this milestone while TSLA just breezed through it,” the post read.

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