By Kuldip K. Ambastha
In the past trading week, BuzzFeed, Inc. (BZFD), an online / digital media, news, and entertainment company, went public through a special purpose acquisition company (SPAC) of 890 5th Avenue Partners, Inc. (ENFA, ENFAU, ENFAW). Other media companies, especially in the digital media arena, have been watching BuzzFeed stock closely to see how investors are valuing the media sector. On Monday, December 6, 2021, the first day of trading, the opening price was $10.95 per share and the closing price was $8.56 per share, making for a change of -21.8% per share during the trading day. On Thursday, December 9, 2021, another big decline was seen, specifically -23.6% per share for the trading day. If BuzzFeed’s currently limited history of days of having its shares traded publicly is a valid precursor of what other media companies should expect in the future when going public, early indications do not look good.
Keywords – BuzzFeed, Inc., BuzzFeed, BZFD, 890 5th Avenue Partners, Inc., 890 5th Avenue Partners, 890 5th Avenue, 890 5th Ave, 890 5th, ENFA, ENFAU, ENFAW, special purpose acquisition company, SPAC, online, digital, media, news, entertainment.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in BZFD, ENFA, ENFAU, or ENFAW.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.
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