What s next for SoFi stock after Chamath Palihapitiya SPAC merger?
SoFi s [SOFI] stock has received growing levels of retail investor attention on social news platform Reddit recently, but unlike GameStop [GME] and others, don t think of it as just another short-squeeze target.
SoFi (short for Social Finance) Technologies is a US mobile-first fintech firm created in 2011 by four Stanford University students to disrupt the student loans sector. Since then, the company has added a range of financial services, and is now more akin to a digital bank, offering mortgages and personal loans, plus stocks and cryptocurrency trading.
Sofi s stock closed up 12.41% at $22.65 on its first day of trading after going public by merging with Social Capital Hedosophia Corp V, a special purpose acquisition company (SPAC) run by venture capitalist Chamath Palihapitiya.
The deal, announced in January, valued SoFi at $8.65bn, reported CNBC. Ex-Facebook [FB] executive Chamath Palihapitiya has already taken multiple companies public through the increasingly popular SPAC route, including Virgin Galactic [SPCE].
Valuation of SoFi after the deal announced in January
How is SoFi s stock performing?
After SoFi s stock got off to a flying start as Palihapitiya s Social Capital Hedosophia Corp V [IPOE] SPAC began trading under the ticker SOFI on 1 June, the share price peaked the following day at $24.95, a 23.82% jump from its 28 May close at $20.15 its last day of trading as IPOE.
Since then, however, SoFi s stock price has stagnated, closing below the $20.00 level every day since 25 June. On Tuesday 6 July, SoFi closed at $17.35 13.89% below its pre 1 June open. (more…)