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Sport News | ARVL stock alert: why does the arrival of electric vehicle manufacturers continue to fall today?

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ARVL stock alert: why does the arrival of electric vehicle manufacturers continue to fall today?

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Today, the company deSPAC Arrival (NASDAQ:ARVL) continues to fall as investors brace for more volatility. As with other companies that have gone public through blank check companies, ARVL stock has been hit by extremely bearish market sentiment. But why?

Source: BigPixel Photo / Shutterstock.com

Among the main reasons for this decline in sentiment are the massive withdrawals of SPACs, before and after the mergers. Seen as speculative vehicles for companies that would otherwise raise funds from venture capitalists, SPACs surged in 2020 and 2021 with incredible momentum.

However, the momentum has run out of steam. Indeed, as we have seen with other sectors like crypto, this is not a good thing. Sentiment plays an important role in determining the valuations of these early-stage companies. With Federal Reserve interest rate hikes on the horizon, investors are cautious at this time.

Let’s take a look at what other factors may be driving this sentiment among companies like Arrival.

ARVL shares plummet as SPACs fall out of favor

It is worth noting the extent of Arrival’s decline. Since peaking at nearly $30 a share early last year, the stock has fallen to $3 today. This marks a new low and a decline of nearly 90% from its high.

Various experts echoed SPAC’s criticisms. Among today’s most prominent detractors is Jim Cramer.

Via a series of tweets, Cramer basically went wild, calling SPACs “Toys for the Rich” and suggesting that he “wouldn’t pay for a SPAC even with Dogecoin.”

So far, Cramer was right. However, given how far these SPACs have fallen recently, there are likely some value investors out there willing to sift through the wreckage.

Will Arrival be one of the companies that will rise from the ashes? We will see.

As of the date of publication, Chris MacDonald had (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 InvestorPlace.com publishing guidelines.



ARVL stock alert: why does the arrival of electric vehicle manufacturers continue to fall today?

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