Is SPAC FOMO Peaking? 3 Stocks Move 20% On Cramer's 'Mad Money' Mentions

SPACs have been one of the hottest stories in 2020. CNBC's Jim Cramer is increasing the exposure of SPACs on his “Mad Money” show that is now causing huge rises in share prices.

What Happened: Last week, Cramer mentioned three SPACs on his show over the course of Wednesday, Thursday and Friday.

On Wednesday, Cramer highlighted Luminar LAZR, a Lidar company that completed its SPAC deal. He called the stock out in his “Know Your IPO” segment and said it was cheap at current levels and worth owning.

On Thursday, Cramer turned his attention to electric vehicles and highlighted CIIG Merger Corp CIIC. The SPAC is bringing Arrival public.

Cramer said Arrival has the best chance to be the “son of Tesla," comparing the company to electric vehicle giant Tesla TSLA. He told viewers to buy shares on a pullback and said to “buy hand over fist” if shares dropped to $17.50.

Friday’s segment saw Cramer highlight Hennessy Capital Acquisition Corp IV HCAC, a SPAC bringing Canoo public.

Cramer likes Canoo’s subscription model for electric vehicles and called the stock “a decent buy for speculative investors.” He also said the company’s “skateboard approach” can help Canoo build for different types of vehicles like sedans, vans and trucks.

Why It’s Important: Cramer is a well-known personality and has always had an impact on moving stocks when mentioned on “Mad Money.”

"'Fast Money,' 'Mad Money' and CNBC always moved stocks, but not 20%," said PreMarket Prep co-host Dennis Dick. "This is what we’re seeing now."

Cramer openly bashed SPACs in September and early October and criticized several names on his show. He now appears to be doing a turnaround and will be covering SPACs to appease his viewers.

The coverage of SPACs on Cramer’s nightly show is causing huge spikes in share prices of stocks mentioned. Shares of all three names mentioned above moved 20% to 30% in after-hours trading on the mention of the name on the show.

With retail trading strong and new traders entering the market, it appears that the “fear of missing out” has never been higher.

Price Action: Shares of Hennessy Capital Acquisition Corp IV are up 27% to $17.11 in early Monday trading.