2 SPAC Stocks to Buy Right Now That Should Make You a Fortune

You might call what we’re experiencing in the investing world right now as the attack of the SPACs. Special purpose acquisition companies are seemingly popping up all over the place. Stock exchanges might have to expand the number of letters available in ticker symbols to handle the flood of SPACs. (Just kidding — maybe.)…

There are quite a few SPACs that you’d be best to avoid like the plague. However, there are also some worth checking out. Here are two SPAC stocks to buy right now that should make you a fortune over the long term.

1. Social Capital Hedosophia Holdings V

Billionaire Chamath Palihapitiya actually could soon run out of letters for his SPACs. He recently filed with the U.S. Securities and Exchange Commission (SEC) to form seven new SPACs with ticker symbols IPOG through IPOM. Keep your eyes on Palihapitiya’s next moves, but in the meantime consider investing in Social Capital Hedosophia Holdings V (NYSE:IPOE).

IPOE is moving forward with plans to merge with fintech up-and-comer SoFi. The deal values SoFi at $8.65 billion. SoFi offers a “one-stop shop” for a wide range of financial services on its smartphone app. Users can apply for loans, refinance loans, buy insurance, invest in stocks and cryptocurrency, transfer money to others, and more.

Membership on SoFi’s flagship app has accelerated for six consecutive quarters. The company expects 75% growth this year with its total members topping 3 million by the end of 2021.

SoFi also owns Galileo and runs the businesses as an independent operation. Galileo provides technology infrastructure services to financial services providers. Its platform currently has around 50 million accounts. Sofi’s goal is to turn Galileo into the Amazon Web Services of fintech.

The company generated net revenue last year of around $620 million. It anticipates revenue will grow almost sixfold by 2025 to nearly $3.7 billion. SoFi also expects to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) this year with strong growth in subsequent years.

There’s one key thing to watch with SoFi that could turbocharge its growth. The company received preliminary conditional approval in October for a national bank charter. If SoFi wins final approval to operate a bank, it could add close to $1 billion in additional adjusted EBITDA through 2025.

2. Gores Holdings VI

Alec Gores is another billionaire investor who has been quite active in forming SPACs. At last count, Gores Holdings had filed for eight SPACs. The one I’m most intrigued by right now is Gores Holdings VI (NASDAQ:GHVI).

Earlier this month, GHVI announced plans to merge with spatial data company Matterport. The transaction pegs an enterprise value for Matterport at $2.3 billion. GHVI and Matterport expect the merger will close in the second quarter of 2021.

What in the world is a spatial data company? Matterport built technology that can build a digital 3D model from any physical space — homes, offices, stores, museums, you name it. So far, the company has digitized more than 10 billion square feet of space and counting. That’s the biggest spatial data library on the planet.

Matterport singlehandedly created the spatial data market in 2011 and remains the clear market leader. It currently has over…

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