Is This Underrated SPAC Deal Stock a No-Brainer Buy?
Investors may recall that a couple of years ago companies were going public left and right. However, instead of going through the traditional underwriting process for an initial public offering, many businesses opted for a lesser-known route: merging with a special purpose acquisition company (SPAC).
There were over 800 SPAC deals in 2020 and 2021, more than double the total amount of SPAC transactions from 2003 to 2019. But last year, only 86 companies merged with a SPAC, suggesting the appetite around these deals has cooled off considerably.
Why? Well, unfortunately, many SPAC deals underperformed the broader market after going public. As a result, enthusiasm for these arguably speculative companies waned.
Source Fool.com
