Please ensure Javascript is enabled for purposes of website accessibility

Why Northern Star Acquisition Stock Popped Today

By Rich Smith - May 28, 2021 at 3:51PM

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

Investors give BarkBox's new owner a hug.

What happened

Shares of Northern Star Acquisition (STIC) popped 12.2% in 3:10 p.m. EDT trading Friday, after shareholders of the special purpose acquisition company (SPAC) voted to approve its acquisition of online pet products store BarkBox.

So what

Northern Star's successful shareholder vote sets the stage for the company to proceed with its acquisition of BarkBox on June 1, and for the combined company -- by this point renamed The Original BARK Company -- to begin trading on the NYSE on June 2 under new ticker symbol BARK.

A person cuddling a small white dog in a field.

Image source: Getty Images.

Now what

Starting June 2, investors' focus will turn from the likelihood that the acquisition will be effected to how effective BARK will be at growing its business and earning profits. In that regard, 10 days ago, Northern Star and BARK jointly announced the latter's fiscal Q4 and full-year 2021 financial results.  

Sales increased 79% year over year for the quarter and 69% for the year. Although losses increased to $7.1 million for the quarter, they held steady at $31.4 million for the year.

Heading into new fiscal year 2022, management projects 56% quarterly sales growth to somewhere between $116 million and $118 million in Q1. For the entire year, management says sales could grow to $516 million (36% sales growth), with losses of $41 million -- 30% worse than last year.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

Northern Star Acquisition Corp. Stock Quote
Northern Star Acquisition Corp.

*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 analyst team.

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 08/20/2022.

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.