• 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.

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."