Digital World Acquisition Corp jumped 25.14% on Tuesday following the announcement that Elon Musk had acquired Twitter for 44 billion. The Special purpose acquisition firm is planning to merge with ex-US President Donald Trump’s social media platform. Following the announcement that Trump’s Truth Social was planning to merge with the company last year, its stock surged and hit highs of $175.
Musk has been critical on Twitter due to free speech concerns and censorship, and under his control, it is likely that Truth Social could be less appealing as an alternative free speech platform. A possible merger between Digital World SPAC and Truth Social could face regulatory scrutiny, and Kerrisdale Capital believes shares of the SPAC could be on a downward trend.
Arch Resource Inc. (NYSE: ARCH) was up 20% after the company announced its Q1 2022 financial results. The company reported a net income of $271.9 million or $12.89 per share in Q1 2022, relative to a net loss of $6 million or $0.4 per diluted share in Q1 2021. Arch had adjusted EBITDA of $321 million during the quarter, including non-cash mark-to-markets loss related to coal-hedging activities of $15.5 million. A year before, the company had adjusted EBITDA of $30.9 million plus a $0.5 million non-cash mark-to-market loss related to coal hedging activities.
Total revenues were $867.9 million for the months ending March 31, 2022, compared to $357.5 million in Q1 2021. The company made significant progress in Q1 2022, including delivering record net income for a second consecutive quarter and achieving a record gross margin for the metallurgical segment despite low shipment levels due to rail service disruptions.
CEO Pal A. Lang said that they managed to execute at a high level and delivered record earnings despite disruptions in rail services.
Magnachip Semiconductor Corporation (NYSE: MX) jumped16.50% following reports that LX Group planned to buy the firm. Reports indicate that South Korean firm LX Group could make a formal offer to purchase MagnaChip as early as next week, but details of the deal are yet to be disclosed. LX Group is looking to acquire the firm to create synergies between MagnaChip and its semiconductor affiliate LX Semicon. The former is a display driver integrated circuits (DDIC) leader that controls 305 market share.
Since December, MagnaChip has been on the lookout for a buyer after a deal with a Chinese private equity group fell through. Increasing tensions between the United States and China may have stymied the agreement, as US authorities worried about national security.