PSTH , what’s the deal? Why’s it so big?

Hey! Trying to understand why PSTH stock was such big noise, a lot of people excited for it, the price is only up slightly . Was that expected? Is it a case of your giving your money to this Ackman guy to invest it for you?

Newbie alert :crazy_face:

The main draws were that it was (is) the biggest SPAC to date at $4b and that they are looking for a ‘mature unicorn’ to acquire, that being a high-quality, venture-backed business that has achieved significant scale, market share, competitive dominance and cash flow without going public.

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Spacs (special purpose acquisition company) give you early access into potential heavy hitters before they go public. Instead of going through traditional IPO process with investment banks, the spac goes public first and then merges with a private company that they are interested in, thus going public instantly.

It’s a pre-IPO essentially, however at the early stages you don’t know yet what you’re getting down the line.
At this point you are trusting Ackman he will buy something great.

Similar thing happened with Virgin Galactic. The spac was IPOA before acquiring a percentage of Virgin Galactic and going public as SPCE.

So IPOB and IPOC are similarly alluring as you can guess…

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