Churchill Capital IV (New York Stock Exchange: CCIV) It has been one of the most talked about Special Purpose Acquisition Companies (SPACs), and it had an incredible career before settling with any operating business. After it finally announced its long-standing merger with luxury electric car maker Lucid Motors, the stock fell from its earnings of more than 450% in 2021.
The shares were cut nearly in half after the details of the deal were announced, but are rebounding again on Friday after Dave Portnoy Twitter (NYSE: TWTR) The comment has him in the spotlight. As of 9:45 am EST today, Churchill Capital stock was up 13.2%.
Portnoy, the famous founder of Barstool Sports, post a tweet today seemingly inciting the crowd of retailers. The message began with: “A billion people told me [Churchill Capital IV] it was the go button today, “before warning fans:” If you can’t see the fool in the first half hour at the table, then you are the fool. “
Once the merger deal was announced, the terms were not what some SPAC speculators expected. The equity value of the transaction was less than anticipated by $ 11.75 billion, helping to cause the stock price to drop sharply. Previous estimates by Bloomberg and others had put the valuation at as much as $ 15 billion.
Yet today’s movement seems to be based solely on the retail community, and not even on the business. As Portnoy cautions while promoting the stocks, true investors need to be careful not to be fools.
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