SPACs Show Signs of Froth as Demand For Good-Story Stocks Grows
- Virgin Galactic, DraftKings make way for China’s We Co., more
- ‘Kids don’t give a rat’s ass about the S&P,’ Lindzon says
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Even in this market, where speculative zeal has never been in short supply, the blind faith being bestowed on companies that go public by merging with blank-check companies stands out.
It started with big rallies in companies like Virgin Galactic Holdings Inc., and DraftKings Inc., which listed on exchanges not via initial public offerings but through mergers with special purpose acquisition companies, or SPACs. They promptly doubled, paving the way for lesser-known firms like Hall of Fame Resort & Entertainment Co., BurgerFi International, Tattooed Chef and UCommune. They are, respectively, an owner of a resort in development near the Pro Football Hall of Fame, a fast-casual burger chain, a plant-based food upstart and the We Co. of China.