CCIV stock is dropping due to a market sell-off in small-cap and growth stocks, as well as bearish sentiment building ahead of the shareholder merger vote. The significant fall has pushed CCIV below its 50- and 200-day moving averages, though it now looks to be much more reasonably valued.
Full Answer
Should you buy CCIV stock?
Only Buy CCIV Stock If You’ll Hold It For At Least 5 Years. When Churchill Capital IV (NASDAQ: CCIV) announced a deal to acquire Lucid Motors at an $11.75 billion valuation on Feb. 22, retail ...
Is CCIV stock a good buy?
Churchill Capital IV (NYSE:CCIV) stock lost almost 50% on Feb. 23 after it announced a SPAC deal to buy Lucid Motors, an electric vehicle maker. CCIV stock lost all of its premium and glitter.
Should I buy CCIV?
To sum it up, CCIV stock isn't a buy right now even after the more than 50 percent drawdown from its 52-week highs. Investors should wait for better prices.
What happens to CCIV stock after the Lucid Motors merger?
The shares of Lucid Group (LCID) have gained recently despite the company’s weak fundamentals. So, we think they could witness a pullback in the near term. We also believe that the stocks of fundamentally strong EV companies NIO Inc. (NIO), XPeng Inc ...
What happen to CCIV stock?
Now that work is finally done as the two companies have completed the merger. As a result of the merger, Churchill Capital and Lucid Motors will be renamed Lucid Group. In addition to this, shares of CCIV stock will switch over to the LCID stock ticker.
Will CCIV stock go back up?
Based on our forecasts, a long-term increase is expected, the "CCIV" stock price prognosis for 2026-07-22 is 116.401 USD. With a 5-year investment, the revenue is expected to be around +380%. Your current $100 investment may be up to $480 in 2027.
Why did CCIV go down?
The stock price fell after it was confirmed that a merger deal was confirmed with Lucid Motors to take the California-based electric vehicle company public. CCIV's stock price drop comes off as a surprise reversal as it was surging through February based on speculation that a deal was imminent.
Is Lucid merger with CCIV?
Lucid Group trades under the "LCID" ticker symbol. Lucid Group, the company formed after Lucid Motors' July 23 merger with Churchill Capital Corp IV (CCIV), has become a publicly listed company.
Should I buy CCIV before merger?
The company has a strong and experienced team that could turn the projections and goals into a reality but I would recommend investors to wait for the merger to complete before investing in CCIV stock.
Who bought CCIV stock?
Lucid shareholders approve SPAC merger to enter Nasdaq $CCIV $LCID prnewswire.com/news-releases/… Lucid CEO and CTO Peter Rawlinson, shared his thoughts on the approved merger: We are thrilled to complete our business combination with Churchill IV and become a public company.
Is CCIV stock overvalued?
Churchill Capital Corp IV Isn't Just Overvalued, It's Caught up in the Meme Stock Spiral. Compared to the gigantic valuation of Churchill Capital Corp IV (NYSE:CCIV) stock, the performance of Lucid Motors — with whom Churchill is expected to merge next week — remains subpar.
Is CCIV done?
and NEW YORK, July 23, 2021 /PRNewswire/ -- Churchill Capital Corp IV ("Churchill IV" or "CCIV") (NYSE: CCIV), a publicly traded special purpose acquisition company, and Lucid Motors today announced the completion of their business combination, taking public a company that is setting new standards with its advanced ...
Is Churchill Capital buying Lucid Motors?
Accelerated spending. Through its merger with Churchill Capital IV, Lucid Motors will receive $4.4 billion in cash net expenses that it can use to scale its luxury electric vehicle (EV) and renewable energy business.
Is CCIV merger completed?
The merger was approved this past July, resulting in the companies joining the Nasdaq under the ticker symbol $LCID and combining for a pro-forma equity value of $24 billion. Lucid's SPAC merger with CCIV joined a growing number of other EV companies that took a similar approach.
Is CCIV now LCID?
CCIV is now officially LCID as the Lucid Motors transaction has closed and begins trading under its new ticker today. All 7 SPAC merger votes are at prices that make more big redemptions possible. The SPAC saga of Churchill Capital Corp.
When did CCIV become Lucid?
Lucid completed the previously announced merger with Churchill Capital Corp IV on July 23, 2021. The combined company will now operate as Lucid Group, Inc. Lucid will be ringing the opening bell at Nasdaq on July 26 to celebrate the company's public listing.
How many vehicles will Lucid make in 2022?
Lucid plans to deliver 20,000 vehicles in 2022, and 135,000 vehicles in 2025. Article continues below advertisement. Source: Lucid Motors.
How much will Lucid make in 2021?
Lucid expects revenue of $97 million in 2021 and $14 billion in 2025, meaning 2021 and 2025 price-to-sales multiples of 378.4x and 2.6x, respectively. If Lucid can keep its promises, CCIV stock might be a multibagger. Advertisement.
What happened
Shares of special-purpose acquisition company Churchill Capital IV ( CCIV ) were trading sharply lower on Tuesday morning after the company announced a deal to merge with electric-vehicle start-up Lucid Motors.
So what
This might be an extreme case of "buy the rumor, sell the news." Churchill's stock price had soared since Jan. 11, when Bloomberg reported that the SPAC was in negotiations with Lucid.
Now what
The details of the deal offer a clue: Churchill's shareholders will collectively own 16.1% of the post-merger company. As of 11 a.m. EST, Churchill's market cap was about $10.9 billion. That implies a market cap for the post-merger company of around $68 billion.
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EV stocks have fallen
However, the bullish thesis for EVs is punctured now. The kind of valuations that most EV stocks are trading at gets hard to justify in light of increasing competition. The rise in bond yields and inflation isn't helping matters either for pre-revenue companies like Lucid Motors.
CCIV stock looks overvalued
CCIV stock looks overvalued even after the recent crash. The stock has a pro forma market capitalization of around $29 billion, while it expects to post revenues of just under $14 billion in 2025. This would mean a 2025 price-to-sales multiple of 2x.
CCIV Stock Manipulation
The End of The Spac Era?
- Like many of the companies acquired during the SPAC craze, Lucid comes with lots of promise and little else. Its projections suggest revenues will climb from $2.2 billionin 2022 to $22.8 billion in 2026 (Page 59). On the bottom line, it expects to generate positive earnings before interest, taxes, depreciation and amortization (EBITDA) by 2024. Free cash flow (FCF) — a financial metric I’m always looking at — is also expected to grow from -$2.8 billio…
The Bottom Line
- Luke Lango believes that Lucid can capture 8% of the global EV market share by getting to an average selling price of $40,000 and roughly 20% operating margins. But that’s going to take a lot of success, considering the Lucid Air starts at $77,400and goes up from there. Yet, Lango thinks it will easily be worth more than $700 billion someday. Perhaps even a trillion dollars, if things go exceedingly well. Like a lot of equity-crowdfunding valuations, people …
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