Space Stocks Are Hot Again. Will This Space IPO Go to the Moon?
I'll say one thing for COVID-19: It sure was great for special purpose acquisition companies (SPACs). In 2020 and 2021, more than 860 separate companies conducted initial public offerings (IPOs) via reverse mergers into SPACs -- blank-check entities created and listed on the stock exchange specifically to acquire private companies and turn them public. (This was up from, for example, just one such SPAC IPO in 2003 and 10 in 2013.)
Problem is, a lot of these SPAC ideas proved half-baked. Among space stocks that went public as SPACs in those years, losses in stock prices post-IPO reached as high as 90% as early as 2022. Once burned and twice shy, investors began to shun not just SPAC companies, but space companies, too.
Until now. All of a sudden, in 2025, space stocks are red-hot again -- and momentum traders are rushing to invest in this next big thing (which was also the last big thing just a few years ago). And Wall Street is happy to take advantage of their forgetfulness.
Source Fool.com
