Why Shares of Pagaya Are Falling After Exploding Higher Yesterday

Shares of the fintech company Pagaya Technologies (NASDAQ: PGY) traded more than 16% lower as of 10:34 a.m. ET today after surging more than 100% at one point yesterday for no obvious reason.

Pagaya recently started trading publicly last month after merging with and going public through a special purpose acquisition company (SPAC) at an $8.5 billion valuation.

SPACs, which are essentially shell companies that provide an alternative avenue for private companies to go public, were all the rage in 2021. But many companies went public through SPACs when market valuations were much higher, which has resulted in many former SPAC companies selling off intensely as soon as they go public.

Source Fool.com