Today, one of the big rumors in the SPAC (special purpose acquisition company) world involves high-profile Altimeter Growth (NASDAQ:AGC). Currently, AGC stock is up more than 20% on over 10 times the average daily volume of shares.
Indeed, Altimeter Growth is a SPAC that has recently received a lot of attention. Since early October, shares of AGC stock have gone from around $10 per share to as high as $16.64 today. Sure, AGC stock has sold off somewhat from today’s highs. However, this is a company that many aggressive investors are pointing to as a potential squeeze play.
Why?
Well, there’s all that excitement that’s still permeating the SPAC world from the initial public offering (IPO) of the Truth Social platform with Digital World Acquisitions (NASDAQ:DWAC). The SPAC’s connections to former President Donald Trump certainly caused quite a bit of buzz. This sentiment, combined with a risk-on attitude in the markets of late, has led many investors to seek out SPACs once again.
Accordingly, it’s perhaps unsurprising to see AGC stock soar today, given a company-specific catalyst investors are watching. Let’s dive into what’s driving shares of this SPAC higher today.
AGC Stock Soars on Rumors of SPAC Merger Approval
Given the retail investor interest in the SPAC world, investors tend to look toward social media to see where the sentiment gauge is pointing. Today, that sentiment gauge appears to be pointed solely in a bullish direction.
Much of the commentary on Twitter appears to be surrounding the potential for an approval to be announced regarding Altimeter’s pending SPAC merger with Grab. As many investors already know, this merger has been delayed. This summer, a Securities and Exchange Commission (SEC) probe into a financial audit of Grab’s statements over the past three years was the reason for the delay.
With little in the way of meaningful updates on this front, investors have been left to speculate. And speculate they have.
Currently, shares of AGC stock are pricing in some sort of news in the near term. Whether the market is getting this one right or not remains to be seen. However, there’s usually something to the power of the markets. Perhaps the masses know something we don’t.
That said, the price discovery process can be a volatile one. This goes double for SPACs. Accordingly, investors bullish on AGC stock should also take caution with this more speculative name right now.
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.
