Bundle of dollars and a bag of SPAC on scales.

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SPACs are back — maybe just with the same old playbook and players

Many assets from the last boom still aren’t looking great.

6/27/25 5:43AM

After a pandemic-era surge that ended in a wave of flameouts, Special Purpose Acquisition Companies (SPACs) — “blank-check” firms that raise money via IPO, then look to merge with a private company — are making a comeback.

According to Bloomberg, US SPACs have raised $11 billion so far in 2025, more than 5x the total at this point last year, and now account for nearly two-thirds of all US IPO volume.

Driving the revival are some familiar names. Goldman Sachs is reportedly returning to the SPAC business after a three-year pause, only with a more selective approach. Chamath Palihapitiya, once dubbed the “SPAC King,” said last week he’ll “probably” launch another, as he concedes his last run “wasn’t a success by any means.” Meanwhile, regulatory tailwinds may be helping, with new SEC Chair Paul Atkins signaling a potential rollback of the stricter rules imposed under his predecessor.

However, cautionary specters from the 2020-21 SPAC frenzy still loom large.

Many of the pandemic-era cycle’s high-profile SPACs have cratered since their IPOs, due to overhyped projections, rising interest rates, and tougher scrutiny. Palihapitiya’s own deals — including Virgin Galactic, Clover Health, Opendoor, and Lucid — have mostly plunged 70% to 90% from their IPO prices (perhaps an explanation for why 71% of respondents in his recent X poll said he shouldn’t return). QuantumScape, despite jumping 35% yesterday, remains far from its peak, having never generated revenue, while several others have been delisted.

There are, of course, a few exceptions. Trump Media surged on political momentum despite its weak fundamentals; DraftKings has ridden the sports betting boom; SoFi Technologies remains a rare win from Palihapitiya with strong consumer traction; and Hims & Hers has built buzz in telehealth — though it certainly looks a little under the weather this week.

Yet many of the old problems persist. SPACs are once again chasing hyped sectors du jour, like crypto, quantum, and autonomous vehicles, and over 90% of completed SPAC deals now trade below their IPO price, per Reuters.

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Retail traders are dumping Bloom Energy after near 300% rally, says JPMorgan

Retail traders are swarming for the exits in fuel cell company Bloom Energy, causing what was once a near 300% year-to-date rally to sour.

JPMorgan strategists led by Arun Jain flagged that Bloom’s net imbalance — the balance of buying versus selling among retail traders — was exceptionally negative as of 11 a.m. ET, even worse than during its double-digit drop on Wednesday.

The fuel cell company, which counts Oracle among its customers, eclipsed a market cap in excess of $20 billion earlier this week despite generating less than $2 billion in sales over the past year.

Wall Street began to sound some alarm bells about the extent of Bloom’s run this week, with Jefferies downgrading its rating for the stock to “underperform” from “hold” on Wednesday while Bank of America analysts wrote, “We are still not buying into BE’s AI hype.”

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Duolingo rises as executives talk up China opportunity

Duolingo posted a solid gain Thursday, the latest in a series of relatively light-on-news moves in the stock this month as it has regained some attention among options-trading retail investors.

There was a story in China’s official China Daily where executives laid out their plans for the language-learning app’s push into the People’s Republic, which has been a focus of Wall Street analysts on recent post-earnings conference calls.

China, where the company began doing business in 2018, is Duolingo’s fastest-growing market for its language-learning app. It’s also the largest source of test takers for its Duolingo English Test proficiency exam business, a recent focus for management spotlighted in its recent Duocon product announcements.

It’s hard to say if the China Daily story is the reason for today’s upswing in the stock, but given the necessities of working within a country controlled by the Chinese Communist Party, a relatively favorable story appearing in its international propaganda organ suggests a relatively healthy working relationship is developing there.

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Oklo dives after insider sale

Oklo dove Thursday after an SEC filing showed company director Michael Klein sold some $6.7 million in stock in transactions that, importantly, were not part of a pre-set insider sales plan.

Wall Street analysts forecast that the nuclear power startup will make losses for years to come. But the company’s ties to OpenAI CEO Sam Altman, who served as Oklo’s chairman until April, have helped make the stock a favorite of retail traders and a popular momentum play.

Even after today’s stumble, it’s up more than 400% this year and nearly 1,300% over the past 12 months.