Several companies, including Grab Holdings and BuzzFeed, that merged with SPACs to go public have seen their shares tumble, as investors pull the rug out from under the stocks hyped in Wall Street’s frenzied blank-check deals this year, Reuters reports.
Shares of BuzzFeed, which merged with blank-check firm 890 5th Avenue Partners, have plunged 40% since their debut on Dec. 6. The digital media firm raised a paltry $16 million out of $288 million in the SPAC’s trust as 94% of its investors took their money back.
Grab Holdings, southeast Asia’s biggest ride-hailing and delivery firm, has lost half its market capitalization since its Nasdaq debut on Dec. 2 following the company’s record $40 billion merger with a blank-check firm.
“A lot of investors are now looking more toward companies that have proven track records, that have demonstrated history of delivering profit,” said Edward Moya, senior market analyst at Oanda. “The frenzy that has been driving some of the momentum in SPACs that we saw earlier in the year has clearly gone away.” Read more.
