After closing at an all-time high of $19.57 in January, BFT stock has fallen nearly 20.1 percent. The stock fell due to profit booking and a broader market sell-off as investors rethink their portfolios due to changing macroeconomic conditions. Other SPACs that are about to take several fintech companies public have also been falling.
Full Answer
Is BFT a hold or sell on Robinhood?
Today BFT ranks #5264 as hold candidate. Get a Free Stock at Robinhood Which way will BFT go? This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.25 between high and low, or 6.43%.
Is the stock in the middle of a falling trend?
The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -52.93% during the next 3 months and, with a 90% probability hold a price between $0.85 and $2.26 at the end of this 3-month period.
What happens when a stock falls below the long term average?
On a fall, the stock will find some support from the short-term average at $3.92. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal.
Is BFT a good investment?
Some wary investors even wondered if it was worth it to hold on to the BFT stock before the Paysafe deal went through and to put those worries to test, BFT stock is a great long-term investment. Here are a few reasons why you should consider having it on your portfolio.
What is the new stock symbol for BFT?
Foley Trasimene Acquisition Corp. II trades on the New York Stock Exchange (NYSE) under the ticker symbol "BFT."
Is Hayward a buy?
Hayward has received a consensus rating of Buy. The company's average rating score is 2.50, and is based on 4 buy ratings, 4 hold ratings, and no sell ratings.
Is Hayward Pool Equipment publicly traded?
Last Friday, Big 3 manufacturer Hayward (formally known as Hayward Holdings, Inc.) global designer, manufacturer and marketer of pool equipment and automation systems, officially went public.
Why did BFT stock fall?
The stock fell due to profit booking and a broader market sell-off as investors rethink their portfolios due to changing macroeconomic conditions.
Is BFT a short squeeze?
BFT stock isn’t a short-squeeze candidate in the fintech sector. This is mainly because the stock has a low short interest ratio. Low short interest ratios usually indicate neutral or bullish market sentiment, while high ratios could indicate bearish sentiment.
History Not Guaranteed to Repeat for BFT Stock
Another one of my InvestorPlace colleagues, David Moadel, mentioned that some SPACs are wagers on the jockey as opposed to the horse. Arguably, you can’t get a better jockey than Bill Foley, which again explains the enthusiasm for BFT stock.
A Parting Note
I’m beginning to think that we’re in a bubble and not just one for SPACs. According to data from FINRA, securities-based margin debt was at a record high last month. Essentially, many investors are using leverage to bid up all kinds of stocks.
SPACS Are Tricky
This makes them dangerous investments because a lot of them have skipped the official vetting. Retail investors have to trust that the acquirers have done a good job. This is not to say that they are illegitimate businesses, but we’ve seen what happened with WeWork.
BFT Stock Has Many Tailwinds
There is no doubt that electronic payment processing is the way to go for the future. That’s one of the reasons that Bitcoin and the processes around it are on fire. Doing things the old way is clunky and inefficient. Moreover, we learned last year that reasons come up that force use to be remote.
There Are Outside Risks
Technically, last week’s lows almost retraced the entire December rally except for one candle. There is still an off chance the bears could finish the job and hit $11 per share. In addition to BFT risks, there are some that stem from the markets in general. Volatility is high. That’s why the Nasdaq fell 3% one day and rallied more than 4% the next.
The Bulls Need to Retake Charge
The BFT stock chart suggests that the sellers are in control for now. Therefore, I expect resistance as it approaches $16 per share. The bulls can eliminate this by slogging through and rising above $16.50. There would lie their opportunity to take over the reins once again.
Why BFT stock is falling
BFT SPAC stock is down over 20 percent from its 52-week highs and is in the bear market territory. IPOE is down 35 percent as Hindenburg Research’s allegations against Palihapitiya took a toll on all of his SPACs.
Institutional investors are buying BFT stock
Institutional investors and mutual funds hold over 35 percent of BFT SPAC. Third Point Capital, which is led by Loeb, holds 5 million shares of BFT and is the largest institutional investor with a 3.4 percent stake. Wells Capital Management and Millennium Management are the other two top institutional investors in BFT.
Dan Loeb bought BFT stock
In the fourth quarter of 2020, Loeb bought BFT stock. All of the shareholdings in BFT are based on that period only since it's the most recent 13F filings. The filing for the first quarter of 2021 would be filed only by May. Meanwhile, BFT is among the top 40 holdings for Third Point Capital now.
Should I buy BFT stock now?
BFT and other fintech companies have come under pressure. The outlook for BFT stock looks positive despite the recent sell-off. The fall in BFT is among the lowest that we’ve seen in the fintech SPAC space. However, it's in line with listed fintech companies. For example, PayPal has lost 22 percent from its peaks, while Square is down 20 percent.
BFT is a good long-term investment
From an industry perspective, fintech is among the most promising themes for the next decade. JPMorgan Chase called fintech the “real COVID-19 story” and pointed to “the rise of online start-ups and expansion of digital platforms into credit and payments.”
