Chamath Palihapitiya may not have announced merger targets for Social Capital Hedosophia IV (NYSE:IPOD) or Social Capital Hedosophia VI (NYSE:IPOF), but that is not stopping them from rallying today. In fact, IPOD and IPOF are both soaring, and it looks like one simple tweet is behind the move. Here is what you need to know now.
To start, perhaps no one is as influential in the SPAC world as Chamath Palihapitiya. His Virgin Galactic (NYSE:SPCE) ushered in a huge wave of deals, and his later blank-check companies have garnered huge followings. Most recently, he has helped bring Opendoor (NASDAQ:OPEN) and Clover Health (NASDAQ:CLOV) public. And in short time, another of his special purpose acquisition companies will send SoFi into public markets.
However, his IPOD and IPOF stocks remain without merger targets. Following the SoFi announcement, many were hopeful that Palihapitiya would soon follow up with deals for IPOD and IPOF. Unfortunately, that did not happen.
Yesterday, Palihapitiya, with some vulgar language, restored hope that an announcement would be coming soon. In fact, he tweeted that “Im about to really fuck some shit up…just fyi.” Although it is far from clear exactly what he is referring to, the tweet did the trick. IPOD stock is up 6.1% in intraday trading, while IPOF stock is up 10.3%.
Now investors are betting that Palihapitiya means he is about to shake up the market with a red-hot merger announcement. So what else do you need to know now?
IPOF Stock and Palihapitiya’s Tweet
Palihapitiya gravitates toward disruptive, tech-focused companies for his SPACs. Virgin Galactic represents new opportunity in space exploration. Opendoor shakes up real estate, while Clover Health shakes up healthcare. And at a particularly relevant time, SoFi represents disruption in finance. Although this does not necessarily narrow the field for IPOD and IPOF, it gives investors some ideas.
Following the recent tweet, retail investors have taken to social media to share their speculation. Top ideas include Plaid, Virgin Orbit, Stripe (which many think will IPO in 2021) and even Lucid Motors, which is in talks to come public with Churchill Capital IV (NYSE:CCIV).
So with speculation so high, what should you do? It is important to be cautious. As we have seen with CCIV stock and other blank-check companies, things can be volatile leading up to a merger announcement. However, Ian Bezek thinks Social Capital Hedosophia VI could be a real winner. Even without deals, that means IPOD and IPOF stock should be on your radar.
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 with InvestorPlace.com.