With special purpose acquisition company (SPAC) mania dying down, there have been less catalysts for aggressive investors lately. For Chamath Palihapitiya’s Social Capital Hedosophia VI (NYSE:IPOF), this has led to serious frustration. Today though, investors have been rallying behind IPOF stock.
So what do you need to know?
Well, while shares may only be up 1%, they are outperforming the major indices today. Investors should also note that this rise came on very heavy volume. It seems investors appear to have a number of catalysts they’re pricing in today.
For those interested in the SPAC world, that’s a good thing. These early stage blank-check companies provide impressive upside, should the merger target be attractive. However, macroeconomic headwinds have made such blank-check bets a real shot in the dark. Accordingly, the appetite for these investments has fallen off a cliff.
Here’s what’s helping turn IPOF stock around on Friday.
IPOF Stock Moves Higher on Key Headlines Today
IPOF stock isn’t just any blank-check firm. It’s the sixth in a series of SPACs launched by famed venture capitalst Chamath Palihapitiya. Mr. Palihapitiya saw incredible success in bringing companies public in 2020 and 2021, though declining interest among speculative investments has hit his portfolio hard.
IPOF does not yet have a merger partner. Accordingly, speculation continues to soar around which company could merge with the Social Capital Hedosophia firm. Among the key candidates is Elon Musk’s SpaceX, which announced today a private 10-for-1 stock split. Such a move may improve the mechanics of a reverse merger, or at least make this company more attractive to bring to the public markets.
Additionally, recent news that Palihapitiya has stepped down from the board of Virgin Galactic (NYSE:SPCE) has some investors even more keen on the idea that SpaceX or Starlink could be the merger partner for IPOF. While this is highly speculative, it is boosting momentum around IPOF.
For now, IPOF remains a black box. Those looking to invest ought to be aware of the risks of doing so.
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.
