Churchill Capital Corp IV (CCIV) Stock News and Price: Latest news shows traders love the EV sector
- CCIV shares remain strong as speculation mounts over Lucid Motors' merger.
- Social media fuelling the buzz as retail remains strongly invested in the story.
- CCIV shares pushing for new highs, up 13%.
Shares in CCIV remain strong on Friday as social media buzz continues to underpin the stock. CCIV has been rumoured to merge with Lucid Motors. News of the merger has sent shares in CCIV skyrocketing this month. As of Friday shares are up 13% at $35.58 in early trading.
CCIV is one of the top trending stocks on twitter, Reddit and /wallstreetbets.
So is CCIV a buy
CCIV is a "blank cheque stock" a Special Purpose Acquisitions Company (SPAC) whose sole purpose is to acquire another business.
CCIV has one of the best founders possible in former Citi deal-maker Michael Klein. Klein has worked on some of the biggest mergers in history and has previously worked closely with Lucid Motors executives and with Lucid Motors backers, the Saudi sovereign wealth fund. So he is a good man to back.
EV manufactures are hot right now with strong valuations. Rivian, who is backed by Amazon, is to seek an IPO later this year at a $50 billion valuation according to reports initially attributed to Bloomberg.
A CCIV share price of $30 values Lucid Motors somewhere around $30-40 billion.
CCIV Shares News
Speculation has been ongoing in relation to when and whether the merger with Lucid will go ahead. As of Friday traders are citing a Bloomberg screenshot, appearing to show the deal is imminent and the status has changed to cash. A spokesperson for the company said the screenshot is from January, according to Benzinga Wire. Either way, if the merger does indeed go ahead, shares in CCIV will probably get a jump. Traders just need to be cautious of the old stock market adage "Buy the rumour, sell the fact". If a deal is concluded a short term spike in the share price could be followed by a period of reflection as investors try to put a valuation on Lucid Motors future earnings potential. Traders can make money by jumping on strong trends, just make sure to have strong risk management in place.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
