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A comment on The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire Sales.

Re:The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire... by pranshum on Wednesday March 01, 2023 @06:10PM (#34989645)
It feels like so much of the IPO class of 21-22 was just a 0 interest rate phenomenon. I did this analysis of fintech IPOs last year. So many of them are down by 80% and growth is slowing. https://yarn.pranshum.com/ipos_int
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Re:The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire... by dragontamer on Wednesday March 01, 2023 @06:18PM (#34989734)
IPOs at least have to file their business model + documents (balance sheet, cash flow, and profit/losses) before taking investor money.

SPACs effectively raise money before they even find a business model. There is no balance sheet, there is no cash flow, there are no profits (or losses).

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So while yes, your discussion about "bubbly IPOs" is warranted, its also kind of off topic with regards to SPACs. SPACs are just another level of risk far beyond IPO.

I feel like a comprehensive discussion would compare IPOs in 2022 vs SPACs in 2022, and see how the two methodologies compared.

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Re:The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire... by dpflan on Wednesday March 01, 2023 @06:13PM (#34989684)
Nice write up, would be nice to have full company names in addition to tickers.
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Re:The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire... by abduhl on Wednesday March 01, 2023 @06:18PM (#34989733)
Isn’t this kind of the story of the stock market writ large though? I don’t recall the exact number but some researcher found that like 95% of the net gains in the market are attributable to less than 5% of companies.
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