Has any SPAC ever actually succeeded in the sense that whatever it purchased didn't die after a year or was atleast profitable? Every one of them always seemed like a huge obvious scam to dump the bags on dumb money.
If someone is the type who willingly hand over their money knowing what a SPAC is and does, he’s a contrarian who smarter than everyone else, an idiot, or someone who thinks he can make a quick buck by letting the idiot hold the bag at the end — but really the latter two end up being the same.
The only companies on this list with stock prices over the original $10 SPAC price are:
- Oklo (mini nuclear reactors)
- DraftKings (gambling)
- Hims & Hers (wellness telehealth)
- Grindr (gay hookup app)
The majority of companies have lost 80-95% of their original value. Many SPACs have done a big reverse split, so their price appears to be over $10 but the original price would have been in the hundreds.
Does anyone know of a site that tracks the outcome of SPAC mergers? I found some articles but most of them are pretty old. Curious if there have been any successes.
It feels like so much "financial innovation" of the past 30 years in that it was just a way for rich people to get even richer and, as you say, leave the dumb money as bag holders.