Here’s why IPOE stock is on the move today
Chamath Palihapitiya’s Social Capital Hedosophia Holdings V (NYSE:IPOE) has been a hot stock of late. Like other celebrity SPAC IPOs, investors have piled into IPOE stock in anticipation of what could turn out to be high-quality merger targets.
As it turns out, tech-focused SPACs have lost some momentum of late. Since hitting a high of more than $28 per share earlier this year, shares of IPOE stock have been on a steady decline. Indeed, the premiums investors have typically paid for such high-growth, early stage companies are deteriorating right now.
That said, not all SPACs are moving in the same direction. Today’s move of nearly 8% in IPOE at the time of writing is instructive. Particularly so as the market trends downward this afternoon.
It appears a singular catalyst is at play with IPOE stock today. Let’s dive into what is breathing life back into this stock right now.
IPOE Stock Higher on Merger Close Date
Today, IPOE stock’s rise can be attributed primarily to a merger date finally being announced and other details emerging.
The company has announced it will begin publicly trading under the SOFI ticker on the Nasdaq Exchange on June 1. The business combination is expected to complete on May 28, marking the last day of trading for IPOE stock.
Indeed, this announcement is a long time coming. Investors appear to be placated by the increased visibility this announcement provides. Additionally, investors appear to look forward to upcoming earnings reports and disclosures presented by SoFi with respect to the company’s operations.
Taking this news a step further, the company announced that it was transferring Class A ordinary shares and warrants from the New York Stock Exchange to the Nasdaq in anticipation of the merger. For investors, this is another sign that everything is falling into place.
As with other SPAC plays, IPOE remains highly volatile right now. Today’s move is certainly nice for investors. However, taking a diversified approach to SPACs may be best right now.