- Phunware stock extended its two-day gain to as much as 2,189% on Friday amid the Digital World SPAC hype.
- The software firm developed an app to help power the 2020 Trump/Pence re-election campaign.
- Traders are speculating that Phunware might play a role in the development of Donald Trump's Truth Social.
Phunware, a small-cap software developer based in Austin, Texas, extended its two-day gain to as much as 2,189% on Friday as it rode the ongoing hype surrounding former President Trump's foray into the SPAC world.
Digital World Acquisition is a SPAC that announced late Wednesday plans to merge with former President Donald Trump's recently formed Trump Media and Technology Group. DWAC stock soared more than 300% on Thursday as investors piled into the hype of a new social media app from Trump, and was up more than 100% in Friday trades.
Phunware stock is rising in sympathy of that move, as investors point out that the software developer was tapped by the 2020 Trump/Pence re-election campaign to build its app.
"Some are saying $phun and $dwac are connected," Chief Strategist of T3TradingGroup Scott Redler said.
There is no confirmation that Phunware will work with Trump Media and Technology Group to help develop the Truth Social media app. There was no immediate response to a request for comment.
Earlier this week, Phunware said it closed an $11 million acquisition of Lyte Technology, which markets high-performance computers for gaming, streaming, and cryptocurrency mining.
Phunware, which was worth just $79 million on Wednesday, is now valued at more than $1.3 billion amid Friday's surge. The stock was halted for volatility on Friday and eventually pared its gains to 625%.
When asked to comment on the stock price move, Phunware told Insider via e-mail, "There are no official updates at this time. When there are further updates to share, we will be sure to do so via the appropriate Reg FD channels."
