The special purpose acquisition company (SPAC) boom is over, right? Well, for investors who believe in the ability of Chamath Palihapitiya to find winners to bring to market, Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF) and IPOF stock continue to be an intriguing speculative play for patient investors.
Indeed, as Mr. Palihapitiya’s sixth SPAC, IPOF stock has been one of the targets without a merger partner for some time. Speculation has come and gone in flurries, with speculation picking up once again today.
Trading at a 3.5% premium to the company’s SPAC IPO price, IPOF stock is up a modest 1% at the time of writing. This isn’t necessarily significant in its own right. However, considering how deeply discounted various SPACs are right now, the fact that IPOF stock is still trading at a premium suggests there’s more intrigue than there is bearish sentiment with this SPAC.
Let’s dive into what’s driving this stock slightly higher today.
IPOF Stock Buoyed By New Merger Partner Rumors
Today, various social media platforms are once again lighting up with rumored partners for IPOF. Among the leading candidates right now is social media platform Discord.
Indeed, as one of Chamath’s largest SPACs, such a merger partner would make sense. This is a SPAC that requires a large deal. And given Discord’s previous buyout offer of $10 billion from Microsoft (NASDAQ:MSFT), it appears this deal size could be in the wheelhouse for IPOF.
Accordingly, retail investors are citing a number of key factors that are intriguing in addition to these facts as reasons why Discord could be IPOF’s much-awaited dance partner. Whether or not this deal actually materializes or not remains to be seen. However, sometimes, where there’s smoke there’s fire.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.