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Why Is Social Capital Hedosophia VI (IPOF) Stock in the Spotlight Today?

Today, Social Capital Hedosophia VI (NYSE:IPOF) stock is in the spotlight again as renewed interest in the special purpose acquisition company (SPAC) grows.

A picture of a series of cubes stacked up to get taller as they go to the right, with the word SPAC on them.
Source: Dmitry Demidovich/ShutterStock.com

On Stocktwits, mentions of IPOF stock have increased by over 50% in the past 24 hours. Furthermore, Reddit chatter of a potential merger with Elon Musk’s Starlink has captured the attention of investors.

Could a merger between IPOF and Starlink possibly be in the books? Here’s what investors should know moving forward.

Will IPOF Stock Merge with Starlink?

Starlink is a division of SpaceX focused on providing global internet connectivity through a “constellation” of satellites. Currently, the company has more than 2,000 satellites in orbit. Furthermore, Starlink has “shipped more than 100,000 satellite internet terminals to customers in 14 countries.” Recently, the company also shipped satellite terminals to Ukraine to provide internet to citizens in light of Russia’s invasion of the country.

According to its website, Starlink offers terminal hardware for $599 as well as its standard service at $110 per month. These terminals can provide download speeds of up to 200 Mb/s, enabling “video calls, online gaming, streaming, and other high data rate activities.”

If Starlink were to merge with IPOF, it would send shockwaves through the stock market. However, a merger doesn’t seem probable. Knowing Elon Musk, the executive is more likely to favor an initial public offering (IPO) or direct listing. Furthermore, parent company SpaceX has raised more than $7.7 billion in funding rounds.

Until we hear confirmation from either Starlink or IPOF, the potential merger is just speculation from excited investors.

Who’s Betting Big on IPOF Stock?

Tracking institutional ownership provides investors with a glimpse inside some of the world’s best investment teams. During the fourth quarter, 123 funds reported owning IPOF stock, an increase of 5 funds from the prior quarter. Meanwhile, 29 funds reported initiating a new position while 22 funds completely liquidated their position. On top of this, the institutional put/call ratio lies at 0.51, a decrease from 0.9. This means that institutions are holding more call options on IPOF stock than put options. That’s good news for IPOF bulls.

With that in mind, let’s take a look at the largest shareholders of the SPAC as of Q4:

  1. Cowen and Company: 6.55 million shares or 5.69% ownership.
  2. Millennium Management: 4.26 million shares or 3.71% ownership.
  3. Fort Baker Capital Management: 3.38 million shares or 2.94% ownership.
  4. Empyrean Capital Partners: 3.21 million shares or 2.79% ownership.
  5. Linden Advisors: 3.09 million shares or 2.69% ownership.

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 InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/why-is-social-capital-hedosophia-vi-ipof-stock-in-the-spotlight-today/.

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