Investors are starting to get a reality check as some companies that sidestepped the traditional IPO process in favor of the blank-check strategy are beginning to badly miss their original financial projections, Markets Insider reports.
Commercial space flight company Virgin Galactic originally forecasted 2021 revenue of $210 million when it went public in late 2019. But the company ended up generating only $3.3 million in revenue, missing its original target by 98%. The numbers look even worse for 2022.
The Defiance Next Gen SPAC ETF is down 51% from its record high, and there have only been 48 new SPAC IPOs so far in 2022. There were more than 600 SPAC IPOs in 2021. Read more.
