ME - 2 Ex-SPACs I Wouldn't Touch Right Now
Hundreds of businesses went public during the SPAC boom of 2020 and 2021, and to be fair, some of them are doing quite well and delivering for investors. However, the majority of ex-SPACs have been beaten down tremendously in the recent market declines, and some look like trouble could be on the horizon.
Two in particular I'd stay away from right now are property technology company Latch (NASDAQ: LTCH) and genetics business 23andMe (NASDAQ: ME) . Both are losing money at an alarming pace and don't have clear paths to profitability, which isn't exactly a good combination in today's economic climate. Here's why even though I bought shares of both of these companies initially, I wouldn't put another dollar into either stock right now.
Latch went public through a merger with a special purpose acquisition company ( SPAC ) sponsored by commercial real estate heavyweight Tishman Speyer. And the idea of the business had a lot of promise. Latch would sell proprietary smart home hardware to commercial property owners and collect high-margin subscription revenue for its building "operating system" after it was installed.
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2 Ex-SPACs I Wouldn't Touch Right Now