Gores Guggenheim Stock News and Forecast: GGPI fails to hold gains from Hertz partnership
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- Gores Guggenheim stock falls nearly 5% after strong gains on Monday.
- GGPI stock had rallied 11% on news of a partnership between Polestar and Hertz.
- GGPI is due to take Polestar public via the SPAC deal in the first half of 2022.
Gores Guggenheim (GGPI) failed to charge higher on Tuesday after the stock did just that on Monday. The catalyst on Monday was the announcement of a partnership between Hertz (HTZ) and Polestar. Hertz is to take 65,000 Polestar EVs over five years. This is similar to a deal last year between Hertz and Tesla (TSLA) when HTZ announced it was buying 100,000 Teslas. On that occasion, TSLA stock rallied 11% and added approximately $80 billion to its market cap. Hopes for something similar in GGPI were not to come to fruition just yet. As a holder of GGPI, I live in hope!
Read more on Electric Vehicle stocks
Gores Guggenheim is due to take Polestar public via the SPAC deal later this year. The exact date is not confirmed but it is due to be in the first half of 2022. Polestar is an electric vehicle maker that is an offshoot of Volvo. Polestar is backed by Volvo and Geely. Geely is Volvo's de-facto owner since 2010. Recently, Volvo bought out its joint venture holding in China from parent Geely as rumors of a potential Volvo IPO mount.
Volvo owns 49.5% of Polestar while Geely owns 50.5%.
GGPI stock news: Meme stock momentum fading
GGPI stock had spiked up to $13.30 when news of the Hertz deal was released, but those gains were short-lived with GGPI giving back 4.6% on Tuesday. Some of this can be put down to overall market weakness as the Nasdaq closed 2% lower, but momentum traders are stepping back from riskier assets currently as can be seen in the momentum in other meme stocks falling.
GGPI stock forecast: Needs SPAC deal clarity before rallying again
Breaking above the strong zone from $12 to $12.36 is key and ideally, GGPI stock would seek to remain above this zone to consolidate for a continued bullish trend move. However, the lack of newsflow is what sees the share price struggle. With that in mind, we feel more sideways trading is likely until more clarity is received about the proposed SPAC deal to take Polestar public. Clarity from Gores Guggenheim is needed on this front. From a personal perspective, any pullback toward $11 can be used to add to my long position. SPACs are required to hold $10 in cash in the event of a no-deal materializing. So this is essentially you're stop loss.
GGPI chart, daily
*The author is long GGPI.
- Gores Guggenheim stock falls nearly 5% after strong gains on Monday.
- GGPI stock had rallied 11% on news of a partnership between Polestar and Hertz.
- GGPI is due to take Polestar public via the SPAC deal in the first half of 2022.
Gores Guggenheim (GGPI) failed to charge higher on Tuesday after the stock did just that on Monday. The catalyst on Monday was the announcement of a partnership between Hertz (HTZ) and Polestar. Hertz is to take 65,000 Polestar EVs over five years. This is similar to a deal last year between Hertz and Tesla (TSLA) when HTZ announced it was buying 100,000 Teslas. On that occasion, TSLA stock rallied 11% and added approximately $80 billion to its market cap. Hopes for something similar in GGPI were not to come to fruition just yet. As a holder of GGPI, I live in hope!
Read more on Electric Vehicle stocks
Gores Guggenheim is due to take Polestar public via the SPAC deal later this year. The exact date is not confirmed but it is due to be in the first half of 2022. Polestar is an electric vehicle maker that is an offshoot of Volvo. Polestar is backed by Volvo and Geely. Geely is Volvo's de-facto owner since 2010. Recently, Volvo bought out its joint venture holding in China from parent Geely as rumors of a potential Volvo IPO mount.
Volvo owns 49.5% of Polestar while Geely owns 50.5%.
GGPI stock news: Meme stock momentum fading
GGPI stock had spiked up to $13.30 when news of the Hertz deal was released, but those gains were short-lived with GGPI giving back 4.6% on Tuesday. Some of this can be put down to overall market weakness as the Nasdaq closed 2% lower, but momentum traders are stepping back from riskier assets currently as can be seen in the momentum in other meme stocks falling.
GGPI stock forecast: Needs SPAC deal clarity before rallying again
Breaking above the strong zone from $12 to $12.36 is key and ideally, GGPI stock would seek to remain above this zone to consolidate for a continued bullish trend move. However, the lack of newsflow is what sees the share price struggle. With that in mind, we feel more sideways trading is likely until more clarity is received about the proposed SPAC deal to take Polestar public. Clarity from Gores Guggenheim is needed on this front. From a personal perspective, any pullback toward $11 can be used to add to my long position. SPACs are required to hold $10 in cash in the event of a no-deal materializing. So this is essentially you're stop loss.
GGPI chart, daily
*The author is long GGPI.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.