Is the IPOE SPAC share a good buy?

0
89

""SPAC Stock"" – Google News

SoFi is well on its way to becoming the fourth company to go public through a Palihapitiya-sponsored blank check company. In October 2019, the billionaire brought Richard Branson-backed Virgin Galactic (SPCE) to the public through the IPOA SPAC. In December 2020 the IPOB released SPAC Opendoor (OPEN), and in January 2021 the IPOC released SPAC Clover Health (CLOV).

If SoFI is such good business, why is IPOE SPAC stock falling?

This year, Virgin Galactic and Opendoor are up 94 percent and 36 percent, respectively, while Clover Health is down 38 percent. Investors have continued to be cautious about Palihapitiya stocks since short seller Hindenburg Research accused the billionaire of misleading investors on the Clover Health deal. Hindenburg claimed Palihapitiya failed to conduct proper due diligence on Clover before recommending it to IPOC investors. The allegations prompted the SEC to open an investigation into Clover.

Article further under advertising

This year, Virgin Galactic and Opendoor are up 94 percent and 36 percent, respectively, while Clover Health is down 38 percent. Investors have continued to be cautious about Palihapitiya stocks since short seller Hindenburg Research accused the billionaire of misleading investors on the Clover Health deal. Hindenburg alleged Palihapitiya failed to conduct proper due diligence on Clover before recommending it to IPOC investors. The allegations prompted the SEC to open an investigation into Clover.

Article further under advertising

Today we show how Clover Health and its Wall Street celebrity promoter Chamath Palihapitiya misled investors about critical aspects of Clover’s business in the run up to the company’s SPAC deal last month. $ CLOV pic.twitter.com/Pvy8ZaPZJ8

– Hindenburg Research (@HindenburgRes) February 4, 2021

CLOV stock is down more than 40 percent from its 52-week high, and the company’s troubles have caught up with Palihapitiya stocks. The IPOF, IPOD and IPOE are down 18, 19 and 31 percent, respectively, from their 52-week highs.

Article further under advertising

In addition to the Clover Health issue, the IPO was hit by a correction in fintech stocks. LendingClub (LC), LendingTree (TREE), and Affirm Holdings (AFRM) all fell at least 3 percent over the past week. Square (SQ) and PayPal (PYPL) are down more than 10 percent. Also, with IPOE SPAC stock nearly tripling its IPO price, it is possible that some investors are trying to make a profit, which continues to put pressure on the stock.

Here are three apps you can use to replace Robinhood:

1) @SoFi *
2) @CashApp
3) @public

* Disclaimer: I’m taking this company public through $ IPOE so I’m biased but I think it kicks the ass.

– Chamath Palihapitiya (@chamath) January 29, 2021

Article further under advertising

Source Link

Leave a Reply