New listings get the short squeeze(?) treatmentThe market had a good week last week, and the bullishness is luring back the meme stock crowd to help give new listings a warm welcome.
- Retail traders are getting busy on social streams, and new listings are reaping the rewards. Recent SPAC Getty Images pumped a dazzling 149% on Friday after a muted first day on the market last Monday. On top of that, digital solutions platform AMTD Digital popped 122% and e-sports brand FaZe Clan claimed gains of 21%.
- None of these companies released any company specific news, seemingly leaving the responsibility squarely on the shoulders of a retail trading crowd who seems to be warming back up after a chilly couple of months for the market. Speculators reckon the GETY short squeeze is based on an inadequate float of public shares.
- Always remember tho, what squeezes up must sink back down. The worry now is that these companies prices may lie way above their fundamentals, and could plummet back down with equal ferocity – so remember to always Look first / Then leap.
Maxim Hopman / Unsplash
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Getty ready for this…Will Getty Images be selling pictures taken of itself at its own public debut? Place your bets now, because the debut is happening today.
- Getty Images will begin trading on Monday under the ticker GETY after the 27-year old company, which has become somewhat of a household name since then, merged with a black-check firm backed by CC Capital and Neuberger Berman.
- The visual media company was valued at $4.8bn back in December, when the merger was initially announced, but received only $875m in committed capital vs the $1.3bn it expected to receive – it says that its “real revenues, real customers and real profits” will help it stand out tho.
- Nevertheless, it’s a bold time to choose the SPAC route, ngl. This year alone, over 30 companies planning a blank-check merger have scrapped their plans to do so – including well-known names like Panera Bread and trading platform eToro – as companies that completed tie-ups have fallen an average of 67%. Will the bravery pay off?
Illustration by TradingView