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ISPO Stock Alert: Why is Inspirato up 500% today?

What’s going on in the world Inspiration (NASDAQ:ISPO) today? The company is up more than 500% the day after entering the market on Valentine’s Day. As a reminder, Inspirato has merged with special purpose acquisition company (SPAC) Thayer Ventures to go public. Inspirato received gross proceeds of approximately $260 million from the transaction, which valued the company at $1.1 billion. Currently, the company has a market cap of over $3 billion.

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Since then, ISPO shares have risen more than 600%. Inspirato operates as a luxury travel subscription company that allows subscribers to book trips to a variety of high-end hotels, cruises and vacation homes. Additionally, the company offers trips to more than 240 destinations worldwide. The subscription program, called Inspirato Pass, starts at $2,500 per month.

Why is ISPO stock up 500% today?

Inspirato is talking about him on social networks today. On Stocktwits, message volume involving ISPO stock is up more than 6,000%. However, there does not appear to be any major news driving this price action. Therefore, the current volatility is largely due to speculation. Additionally, Yahoo Finance notes that ISPO shares have a total of 46.93 million shares outstanding. Due to the low float, the stock price can be more easily manipulated.

Thayer Ventures co-CEO Chris Hemmeter said he was happy with the SPAC transaction, commenting that:

“Inspirato continues to show all the hallmarks of a disruptive leader in the luxury travel space. With its network-effect subscription business model, consistent focus on subscriber satisfaction, and growing momentum on the offer, it is tailor-made to help travelers make the most of their precious time in a post-pandemic world.

In a U.S. Securities and Exchange Commission (SEC) filing, Inspirato explained why it chose to go public through SPAC instead of an initial public offering (IPO). The company believed that a SPAC listing would “give us quick and efficient access to government markets and provide us with flexibility and optionality.” In addition, the luxury travel agency will be able to receive advice from Thayer Ventures.

What’s next for Inspirato?

Last year, the company launched Inspirato Real Estate to strengthen its business portfolio. The consumer-facing venture will enable customers to “find, buy, own and enjoy a luxury vacation home”. Additionally, buyers can find a home using Inspirato and then re-rent it to them. Inspirato will provide buyers with a “personalized lease overview and financial performance profile” to help them make the best decision.

During the third quarter, Inspirato posted a net loss of $9.1 million, which was disappointing since the company had reported net income of $1.7 million a year earlier. The company has not yet disclosed a fourth quarter earnings date.

At the date of publication, Eddie Pan did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to publishing guidelines.


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