Why Porch Group Stock Got Crushed Today
Shares of home-services company Porch Group (NASDAQ: PRCH) got crushed on Tuesday after the company reported financial results for the second quarter of 2021. Many growth stocks are selling off today. So perhaps Porch Group's sell-off is more due to general market volatility because it's hard to find many problems in its quarterly report, as we'll see. Nevertheless, Porch Group stock was down 12% as of 1:30 p.m. EDT today.
Porch Group went public via a merger with a special purpose acquisition company (SPAC) in December. And its strategy has been growth via acquisitions. That's been a fortuitous combination. As a reminder, SPACs get extra cash from the redemption of public warrants when the stock price is over $18. Porch Group's was, and it was able get $126.8 million from this during the second quarter as a result. During the quarter, it immediately put this capital to work by spending $127.9 million to acquire other companies.
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Source Fool.com
