The SPAC world’s rebound didn’t last long. After posting small gains throughout late winter, stocks of companies bought by blank-check firms plunged once again in April, including some created by the “SPAC King” himself, Chamath Palihapitiya.
Each of the four companies that merged with special-purpose acquisition companies led by Palihapitiya dropped at least 15% in the month. In some cases, such as Clover Health Investments Corp. and SoFi Technologies Inc., losses for the month were even bigger. All told, a benchmark index for SPACs that completed mergers is down more than 70% since peaking in February 2021.