SPAC-Backed Stocks Find Few Takers Even After Enduring 60% Rout

The rich valuations remind Cordell Eminent Scholar Jay Ritter of initial public offerings in the 1980s and 1990s, which were typically done by young companies with similarly optimistic business models.

“A lot of them turned out to be disappointments for investors, and so far that’s been true with a set of companies that have recently merged with SPACs,” said Ritter, a finance professor who specializes in public-listings data.

Read more in this story from Bloomberg.