10 Best SPACs to Invest In According to Reddit
In this article, we discuss the 10 best SPACs to invest in according to Reddit. If you want to skip our detailed analysis of these SPACs, go directly to the 5 Best SPACs to Invest In According to Reddit.
Special Purpose Acquisition Companies (SPACs) have been all the rave in the financial world over the past few months as they facilitate blockbuster initial public offerings (IPOs) through mergers with startups just before they go public. According to SPAC Research, public offerings through special purpose companies raised more than $83 billion in 2020. By June 2021, SPAC-facilitated IPOs have already raised more than $108 billion through the debut of close to 350 new companies on the stock market.
Some of the famous names to go public through SPACs include DraftKings Inc. (NASDAQ: DKNG), ChargePoint Holdings, Inc. (NYSE: CHPT), Virgin Galactic Holdings, Inc. (NYSE: SPCE), Nikola Corporation (NASDAQ: NKLA), and Opendoor Technologies Inc. (NASDAQ: OPEN). DraftKings Inc. (NASDAQ: DKNG), the Boston-based sports betting company, has a market cap of close to $20 billion and an average trading volume of 16,860,584. On May 12, investment advisory Goldman Sachs gave the stock a Buy rating with a $77 price target.
ChargePoint Holdings, Inc. (NYSE: CHPT), the California-based electric vehicle infrastructure company, raised close to $500 million in net proceeds from the SPAC-linked IPO earlier this year. The company has since reached a market valuation of over $10 billion and earned bullish ratings from investment advisors such as Jefferies and Needham. Jefferies has a Buy rating on the stock with a price target of $40 while Needham also has a Buy rating on the shares with a slightly slower price target of $39.
Perhaps one of the most anticipated SPAC-facilitated IPOs of the past few months has been the stock market debut of Virgin Galactic Holdings, Inc. (NYSE: SPCE), the American spaceflight company that is one of the first big private spaceflight firms to go public, ahead of competitors like SpaceX and Blue Origin. The company went public last year at a valuation of over $2.3 billion and the share price of the firm had jumped by close to 45% till April. The firm now has a market cap of close to $9 billion. The stock is one of the most popular ones on Reddit forums.
As the clean energy business explodes around the world, firms like Nikola Corporation (NASDAQ: NKLA) have been going public. The company debuted on the stock exchange through a merger with a special purpose firm and was valued at over $12 billion. Known as the ‘Tesla of Trucking’, the firm recently announced that it had invested close to $50 million in a clean hydrogen project in Indiana. On May 28, investment advisory BTIG gave the stock a Buy rating with a price target of $18, calling it a disruptor in the truck market.
Another much-hyped IPO through a special purpose company over the past few months was the stock market debut of Opendoor Technologies Inc. (NASDAQ: OPEN), the California-based firm that runs a digital platform primarily focused on residential real estate across the United States. The company has a market cap of close to $10 billion and recently beat market expectations on earnings per share and revenue for the first quarter of 2021. The total homes sold on the platform in the first three months of 2021 stood at over 2,400.
It remains to be seen how many more startups chose the SPAC path to go public this year. The technology sector, which has a natural aversion towards traditional finance, seems to be favoring this method more than other industries. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the 10 best SPACs to invest in according to Reddit. These companies were ranked keeping in mind the hype around them on Reddit, the funds they raised at their initial public offering, and the mergers they are presently involved in.
Best SPACs to Invest In According to Reddit
10. InterPrivate II Acquisition Corp. (NYSE: IPVA)
InterPrivate II Acquisition Corp. (NYSE: IPVA) is a special purpose acquisition company that is run from New York. It is placed tenth on our list of 10 best SPACs to invest in according to Reddit. The firm went public in March 2021, managing to raise close to $260 million from the initial offering. It focuses on mergers with companies working in the auto, consumer, retail, and industrial technology businesses. The CEO of the firm is Ahmed Fattouh.
InterPrivate II Acquisition Corp. (NYSE: IPVA) has a market capitalization of over $315 million. The 52-week price range of the stock is between $9.7 and $10.7. On June 1, the firm received a notice from the New York Stock Exchange after it failed to file a quarterly report for the first three months of 2021 with regulatory authorities in the United States. The notice does not immediately affect the status of the company on the exchange.
Just like DraftKings Inc. (NASDAQ: DKNG), ChargePoint Holdings, Inc. (NYSE: CHPT), Virgin Galactic Holdings, Inc. (NYSE: SPCE), Nikola Corporation (NASDAQ: NKLA), and Opendoor Technologies Inc. (NASDAQ: OPEN), InterPrivate II Acquisition Corp. (NYSE: IPVA) is one of the best SPAC-linked stocks to invest in according to Reddit.
9. FirstMark Horizon Acquisition Corp. (NYSE: FMAC)
FirstMark Horizon Acquisition Corp. (NYSE: FMAC) is a special purpose acquisition company based in New York. It is ranked ninth on our list of 10 best SPACs to invest in according to Reddit. The company went public in October 2020, raising over $414 million from the initial offering. The firm mainly concentrates on mergers with technology companies that are based in the United States or Canada.
FirstMark Horizon Acquisition Corp. (NYSE: FMAC) has a market capitalization of over $516 million. The CEO of the firm is Amish Jani. The 52-week price range of the company’s shares is between $9.7 and $14.4. The company is different from other SPACs as it has permission to pursue transactions with other companies that are affiliated with people who are sponsors or sitting on the board of directors of the firm.
Just like DraftKings Inc. (NASDAQ: DKNG), ChargePoint Holdings, Inc. (NYSE: CHPT), Virgin Galactic Holdings, Inc. (NYSE: SPCE), Nikola Corporation (NASDAQ: NKLA), and Opendoor Technologies Inc. (NASDAQ: OPEN), FirstMark Horizon Acquisition Corp. (NYSE: FMAC) is one of the best SPAC-linked stocks to invest in according to Reddit.
8. Tuscan Holdings Corp. (NASDAQ: THCB)
Tuscan Holdings Corp. (NASDAQ: THCB) is a special purpose acquisition company headquartered in New York. It is ranked eighth on our list of 10 best SPACs to invest in according to Reddit. The company concentrates on initial public offerings related to the technology sector. It went public in March 2019 and raised more than $276 million from the offering. The CEO of the company is Stephen Vogel.
Tuscan Holdings Corp. (NASDAQ: THCB) has signed a definitive agreement for a merger with Microvast Inc., the Texas-based company that designs battery control systems and is valued at over $3 billion. The battery firm is in talks for an initial public offering in the coming months. Tucson has a market capitalization of over $440 million.
Just like DraftKings Inc. (NASDAQ: DKNG), ChargePoint Holdings, Inc. (NYSE: CHPT), Virgin Galactic Holdings, Inc. (NYSE: SPCE), Nikola Corporation (NASDAQ: NKLA), and Opendoor Technologies Inc. (NASDAQ: OPEN), Tuscan Holdings Corp. (NASDAQ: THCB) is one of the best SPAC-linked stocks to invest in according to Reddit.
7. Fusion Acquisition Corp. (NYSE: FUSE)
Fusion Acquisition Corp. (NYSE: FUSE) is a special purpose acquisition company run from New York. It is ranked seventh on our list of 10 best SPACs to invest in according to Reddit. The firm targets mergers with other companies in the technology, financial services, and wealth management sectors. It went public in June 2020 and raised more than $350 million from the offering. The CEO of the firm is John James.
Fusion Acquisition Corp. (NYSE: FUSE) has signed a definitive agreement for a merger with MoneyLion, the New York-based mobile banking company that is valued at close to $3 billion. MoneyLion is planning an IPO for the second half of 2021. According to news agency Reuters, the merger will be supported by $250 million in private investment from firms such as BlackRock, Apollo Global Management and others.
Just like DraftKings Inc. (NASDAQ: DKNG), ChargePoint Holdings, Inc. (NYSE: CHPT), Virgin Galactic Holdings, Inc. (NYSE: SPCE), Nikola Corporation (NASDAQ: NKLA), and Opendoor Technologies Inc. (NASDAQ: OPEN), Fusion Acquisition Corp. (NYSE: FUSE) is one of the best SPAC-linked stocks to invest in according to Reddit.
6. Fortress Value Acquisition Corp. II (NYSE: FAII)
Fortress Value Acquisition Corp. II (NYSE: FAII) is a special purpose acquisition company based in New York. It is placed sixth on our list of 10 best SPACs to invest in according to Reddit. The company went public in August 2020 and raised more than $345 million from the offering. It targets mergers with firms working in the technology sector. It presently has a market capitalization of close to $450 million. The CEO of the company is Andrew McKnight.
Fortress Value Acquisition Corp. II (NYSE: FAII) completed a merger and IPO with ATI Physical Therapy, Inc. (NYSE: ATIP), the Illinois-based physical therapy firm founded in 1996 that is valued at close to $2.5 billion. ATI is the largest outpatient physical therapy provider in the United States. The company runs close to 900 physical therapy clinics in the country. Morgan Stanley and Deutsche Bank were underwriters on the ATI merger with Fortress.
Just like DraftKings Inc. (NASDAQ: DKNG), ChargePoint Holdings, Inc. (NYSE: CHPT), Virgin Galactic Holdings, Inc. (NYSE: SPCE), Nikola Corporation (NASDAQ: NKLA), and Opendoor Technologies Inc. (NASDAQ: OPEN), Fortress Value Acquisition Corp. II (NYSE: FAII) is one of the best SPAC-linked stocks to invest in according to Reddit.
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Disclose. None. 10 Best SPACs to Invest In According to Reddit is originally published on Insider Monkey.