SBE Stock on Fire, Should I buy now?

Описание: Switchback Energy (NYSE:SBE) is in the right place at the right time. Traders love special purpose acquisition companies (SPACs) at the moment, and they absolutely adore electric vehicle (EV) firms. Thus Switchback, which sits at the intersection of these two trends, is an ideal stock for the current moment. You saw that on Thursday in particular, as Switchback’s stock soared 25% in a single session.

a chargepoint charging station
Source: Michael Vi / Shutterstock.com
Does Switchback live up to the hype? By and large, yes it does. It certainly has more going for it than many of its rivals in the EV space. And it starts at the business model itself.

Switchback will soon be merging with ChargePoint, which is the undisputed leader in charging stations for EVs. ChargePoint already has an extensive network set up and is generating some serious revenues. How, in turn does that make Switchback look as an investment?


While many SPAC mergers have proven to be value-destroying,, SBE stock looks different. For ChargePoint is dominant in its niche and is leveraging SPAC funding to fortify that position.

Many other firms with less -than-stellar positioning have utilized the funds they raise from SPACs to fund weak business ideas. ChargePoint is clearly not in that camp.

I think SBE stock will almost certainly rise between now and its merger. I also believe that the shares will remain strong after the merger due to ChargePoint’s powerful business model and the funds. it will obtain from the transaction

Switchback is one of the few SPACs I’ve recently covered that really looks very appealing to me. I think investors who want EV-infrastructure stocks in their portfolios should buy the shares.

Switchback Energy Acquisition Corp. (NYSE:SBE 27.66 11.98%) is one of the most attractive Special Purpose Acquisition Companies (SPACs) currently. With the stock’s year-to-date gains exceeding 100 percent, investors appear willing to continue bidding up the SPAC’s share price as the deadline for the merger with the EV charging service provider, ChargePoint, draws ever closer.

As a refresher, a SPAC is a public entity that raises funds through an IPO in order to acquire a private company. As shares of the combined company continue to trade on the stock exchange, the mechanism offers a cheaper and easier route for a private company to go public. Moreover, the shareholders of a SPAC may redeem their shares for cash up until the proposed business combination with the target entity achieves closure, thereby minimizing the potential for a loss.


witchback Energy Acquisition and ChargePoint had entered into a definitive merger agreement on the 23rd of September, with the transaction expected to close within the fourth quarter of 2020. The combined company is expected to have an enterprise value of around $2.4 billion. Bear in mind that Switchback Energy Acquisition currently retains around $317 million in IPO proceeds in its trust account. When combined with a PIPE investment of $225 million from institutional investors, the combined company will have access to around $683 million in cash (assuming no share redemptions).


Switchback Energy Acquisition certainly chose its merger target wisely. As an illustration, ChargePoint is currently one of the largest EV charging service providers in the world, with over 4,000 partner businesses and organizations offering 115,000 unique charging points. Moreover, the company also offers access to an additional 133,000 public charging points through network roaming integrations across North America and Europe. ChargePoint employs a CAPEX-light approach by selling host businesses and organizations the necessary charging hardware – including AC level 2 to DC fast charging equipment – in order to electrify parking spaces. The resulting charging network is integrated via a mobile app.