Oftentimes investors chase up blank-check companies on big merger announcements. However, the story for Pershing Square Tontine Holdings (NYSE:PSTH) has been quite different. Instead, the special purpose acquisition company continues to shoot up on nothing but speculation, and admiration for its founder. With another such rally in the rear-view mirror, what do you need to know about PSTH stock?
With that question in mind, here are 13 things to know about Pershing Square and PSTH stock:
- Behind the SPAC is Pershing Square Capital Management and founder Bill Ackman.
- Importantly, many investors have flocked to PSTH stock because of Ackman.
- Why? Well, Ackman is legendary, known for his role as an activist investor.
- Additionally, Ackman is not a stranger to the world of blank-check companies.
- Back in 2011, he launched Justice Holdings as a blank-check company. Justice Holdings then acquired popular chain Burger King.
- After the reverse merger, Ackman worked a deal with 3G Capital to combine Burger King and other popular brands under the Restaurant Brands International (NYSE:QSR) umbrella.
- With this backdrop, Ackman and Pershing Square Capital launched PSTH stock in July 2020.
- When it came public, Pershing Square Tontine Holdings was the largest-ever SPAC.
- This is because it raised $4 billion.
- Importantly, Ackman has said that PSTH is looking for a mature unicorn. According to the billionaire, up until now, these unicorns have not faced pressure to come public. Pershing Square thinks now is the right time to make a move.
- Investors should note that Pershing Square has not identified a merger target.
- However, that has not stopped investors from rampant speculation.
- Some rumors have included SpaceX, Palantir (NYSE:PLTR) and Stripe.
What You Need to Know About PSTH Stock
Right now, there are several reasons to keep Bill Ackman and PSTH stock on your radar. For starters, Ackman does not have a perfect track record. However, his reputation continues to captivate Wall Street, and his leadership of the SPAC merits attention. Additionally, due to its size and focus on mature unicorns, there is reason to believe Pershing Square Tontine Holdings will bring an exciting business to the public markets.
But investors are likely wondering why PSTH stock shot up so much this week. Well, that is largely due to speculation over which firm the SPAC will take public. With Palantir out of the running thanks to its own IPO, there are still some investors who believe it could be SpaceX or Stripe. However, another rumor is sparking interest. According to people familiar with former New York City Mayor Michael Bloomberg, Bill Ackman could be working to take Bloomberg public.
That is where the big spike in PSTH stock came from yesterday. Importantly, investors learned that S&P Global (NYSE:SPGI) would buy rival IHS Markit (NYSE:INFO) for $44 billion. That clocks in as the largest merger in 2020. Additionally, it also tells investors that market research is a hot commodity. If Pershing Square does grab Bloomberg, it could be debuting into a red-hot market.
What should you do now? Keep a close eye on PSTH stock, but be wary of speculation. As of right now, a company spokesperson for Bloomberg is denying the news. Until we know more, Pershing Square Tontine Holdings represents a lot of uncertainty but a lot of potential.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.