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Finance

What Are the Best SPAC Stocks to Buy Now?

Overall, 2020 marked a new high in the companies going public through the SPAC route. Nearly 230 SPAC IPOs raised $80 billion, which was more than the money raised through this route in the last 10 years. After starting 2021 on an even more bullish note, SPACs are now experiencing their moment of truth. Most of the SPACs have fallen significantly. What are the best SPACs to buy now?

Best SPACs to buy now

A lot of the SPAC buying opportunities have been created in the EV space. While last year saw valuations soar for many EV stocks, the recent rotation away from growth has rendered some of the EV SPACs undervalued. CLII (which is scheduled to take EVgo public) is one such stock, which has fallen enough from its peak for its valuation to start making sense. ChargePoint, which went public through a merger with SBE, is another attractive bet in the EV infrastructure space, especially given Biden’s EV push. TPGY, which is set to take EVBox public, is also an attractive bet on the growing EV population and charging needs in Europe. Arrival and GIK Stock (will take Lightning eMotors public) are good mainstream EV bets.

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Clover Health is one of the SPACs that was rocked by the broader sell-off but also due to company-specific reasons. Hindenburg Research’s allegations tanked Clover Health stock and other Chamath Palihapitiya-backed SPACs also sold off on this news. Apart from the short-term considerations, Clover stock should be a long-term winner. 

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Paysafe (PSFE) started trading on the NYSE on March 31 after merging with SPAC Foley Trasimene. Paysafe is well-positioned to take advantage of long-term prospects of the global payments industry. It has higher EBITDA margins than the market leader, PayPal.

STEM stock, which started trading on April 29 after the merger with Star Peak Energy, is also a potential buy based on its long-term positioning and an early mover advantage in the clean energy storage space. Its valuation also looks reasonable based on its growth forecasts.

Palihapitiya-backed IPOE SPAC, which is set to merge with SoFi, is one of these names. The stock is down 32 percent from its peak. While the stock still trades at a nearly 65 percent premium to the listing price, SoFi’s growth prospects and market-disrupting potential justifies its price.

View more information: https://marketrealist.com/p/best-spac-stocks-to-buy-now/

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