Why Pagaya Technologies Stock Fell 52% Last Month
Shares of Pagaya Technologies (NASDAQ: PGY) took a 51.9% haircut in August 2022, according to data from S&P Global Market Intelligence. However, the stock also rose by a thrilling 494% in July. Pagaya investors pocketed a total gain of 185%, measured across those two months.
As extreme as these moves may seem, they are actually quite common for stocks like Pagaya. The company entered the public stock market at the very end of June. Brand-new tickers are often prone to massive volatility until the market gets a feel for what this new name is and how its market price should be calculated.
That's especially true for stocks entering the market through a so-called special purpose acquisition company (SPAC). Pagaya took that ultra-volatile route through a merger with a SPAC called EJF Acquisition Corp. After the merger, Pagaya started its publicly traded life with a market capitalization of $8.5 billion. That's one of the largest SPAC deals ever completed for an Israel-based company and a splashy market entry, regardless of the company's roots.
Source Fool.com
