Churchill Capital Corp IV Shares Rally On Dave Portnoy Tweet, Reddit Activity

Churchill Capital Corp IV CCIV, one of the hottest SPACs of 2021, is getting more action Friday morning, with new investors hoping to bring new life to a stock that fell on a deal announcement.

What Happened: Barstool Sports founder and popular internet personality Dave Portnoy said in a tweet that he took a position in CCIV. 

“I had a billion people tell me $CCIV was the go button today,” Portnoy said in a tweet. “I bought it. I’ll prob get killed.”

Portnoy is referring to Churchill Capital Corp IV CCIV, the SPAC taking Lucid Motors public. Portnoy tweeted that he bought $500,000 worth of CCIV stock.

“If you can’t spot the sucker in the first half hour at the table, then you are the sucker,” Portnoy added.

Shares could also be trading higher as the stock makes the rounds on Reddit. New pages dedicated to Lucid Wallstreetbets and CCIV have popped up on Reddit and are encouraging a GameStop Corp GME-inspired rally.

Related Link: 9 Key Takeaways From Lucid Motors SPAC Merger

Why It’s Important: Lucid Motors was rumored to be linked with Churchill Capital Corp IV beginning in January. Shares traded at the highest pre-merger announcement premium for a SPAC in the last year.

Shares had a 52-week high of $64.86. After the deal with Lucid Motors was announced Monday, Churchill Capital Corp IV shares fell over the following trading days.

The fall in the share price could have something to do with questions of valuation. The SPAC deal valued Lucid Motors at $11.75 billion based on the $10 share offering price.

A PIPE of $2.5 billion was done valuing the company at $24 billion. With shares trading over $50, the company was valued at more than $60 billion. 

CCIV Price Action: Shares of Churchill Capital Corp IV were up 11% to $30.93 shortly after the Portnoy tweet. The stock was trading 5.88% higher at $29.46 at last check. 

Disclosure: Author is long shares of CCIV.

Photo courtesy of Lucid Motors.