ISPO Stock Alert: Why Is Inspirato Up 500% Today?

What in the world is going on with Inspirato (NASDAQ:ISPO) today? The company is up over 500% on the day after it made its market debut on Valentine’s Day. As a refresher, Inspirato merged with special purpose acquisition company (SPAC) Thayer Ventures to come public. Inspirato received gross proceeds of roughly $260 million from the transaction, which valued the company at $1.1 billion. Currently, the company has a market capitalization over $3 billion.

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Since then, shares of ISPO stock are up over 600%. Inspirato operates as a luxury travel subscription company that allows subscribers to book trips through a variety of upscale hotels, cruises and vacation homes. Furthermore, the company offers trips to over 240 global locations. The subscription program, called the Inspirato Pass, starts at $2,500 per month.

Why Is ISPO Stock Up 500% Today?

Inspirato is the talk of the town on social media today. On Stocktwits, message volume involving ISPO stock is up over 6,000%. However, there seems to be no material news driving this price action. Therefore, the volatility today is largely due to speculation. In addition, Yahoo Finance notes that ISPO stock has total shares outstanding of 46.93 million. Due to the low float, the price of the stock may be more easily manipulated.

Thayer Ventures co-CEO Chris Hemmeter was pleased with the SPAC transaction, commenting that:

“Inspirato continues to show all the hallmarks of a disruptive leader in the luxury travel space. With its network-effect subscription business model, relentless focus on subscriber satisfaction, and growing supply-side momentum, it is custom-designed to help travelers make the most of their valuable time in a post-pandemic world.”

In a U.S. Securities and Exchange Commission (SEC) filing, Inspirato explained why it chose to go public via SPAC instead of an initial public offering (IPO). The company believed that a SPAC listing would “allow us to quickly and efficiently access public markets and will provide us with flexibility and optionality.” In addition, the luxury travel company will be able to receive guidance from Thayer Ventures.

What’s Next For Inspirato?

Last year, the company launched Inspirato Real Estate to strengthen its business portfolio. The consumer-facing venture will allow customers to “find, buy, own, and enjoy a luxury vacation home.” In addition, buyers can find a home using Inspirato, and then lease it right back to them. Inspirato will provide buyers with a “personalized lease overview and financial return profile” to help them make the best decision.

During Q3, Inspirato reported a net loss of $9.1 million, which was disappointing since the company reported a net income of $1.7 million a year earlier. The company has not disclosed an earnings date for Q4 yet.

On the date of publication, Eddie Pan did not hold (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 Publishing Guidelines.

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