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Buy These Post-SPACs if They Fall to $5.00 - SOFI, ASTR, ex DM, OUST
In 2020 and 2021, special purpose acquisition companies looked like a sure profit. Companies could reverse merge and get access to cash. After the SPAC, there are a few companies that operating in promising growth areas but have more downside ahead.
Astra Space (ASTR) trades at around $5.00 already. When the company prepares for the Cape Canaveral launch, the stock may sell on the news. Astra aims to launch daily with small satellites. It will compete with Rocket Labs and Virgin Orbit. RKLB stock also peaked at $20.00 in Sept. 2021. The stock risks falling toward the $5.00 level.
SoFi (SOFI) is in a steep downtrend. The stock faces near-term risks. The trade to bet on a bounce after the fintech gets a bank charter is a crowded one. SOFI stock could fall after markets sell on the news of the approval. Negativity for fintech is strong enough to send SOFI to the $5.00 range, too.
Desktop Metal (DM) is a notable post-SPAC already trading below the $5.00 range. The 3D printing market is nothing new. Speculators thought the company would offer something that would disrupt the market.
In the self-driving digital lidar solutions market, Ouster (OUST) is below $5.00. investors should avoid DM and OUST stock until sentiment reverses.
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