Please ensure Javascript is enabled for purposes of website accessibility

Why dMY Technology Group III Popped 26.8% Today

By Travis Hoium - Feb 24, 2021 at 3:54PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Rumors of a SPAC merger have the market excited today.

What happened 

Shares of dMY Technology Group III (DMYI) jumped as much as 26.8% in trading on Wednesday after Bloomberg reported that the company is in talks to merge with IonQ, a quantum-computing company. Shares fell slightly in afternoon trading but were still up 17.4% at 2:50 p.m. EDT. 

So what

Based on Bloomberg's reporting, IonQ could merge with dMY Technology Group III with a total valuation of about $2 billion. Silver Lake, MSD Partners, and Bill Gates' Breakthrough Energy are among the groups discussing being part of the private investment in public equity (PIPE) deal, or additional funding that's added to the company prior to the merger.

A jovial-looking young man throwing money in the air.

Image source: Getty Images.

Neither company has commented publicly, and merger announcements can take some time to materialize. But the report did indicate that an announcement would be coming in the next few weeks. 

Now what

Traders can often push a stock higher when a special purpose acquisition company (SPAC) merger is announced, and it looks like that's what's happening today. We don't know any real details, and a deal hasn't officially been announced, but speculation alone is enough to excite investors. I would tread carefully with today's hype because if a deal falls apart or terms aren't to investors' liking, this SPAC could drop as quickly as it popped today. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

dMY Technology Group, Inc. III Stock Quote
dMY Technology Group, Inc. III

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.