MariaDB plunges nearly 40% in NYSE debut after SPAC merger • Hacker News Board

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#11

Post by bfeynman » Tue, Dec 20, 2022, 8:24 PM UTC

jaboutboul wrote: post #9

Hopefully SPACs are cooked after this and the other recent bad SPAC news.

SPACs have been cooked since last year. The fact people are still doing it now during the worst time to make any public offering shows that they are completely out of options and need to cash out.

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#12

Post by Amfy » Tue, Dec 20, 2022, 8:24 PM UTC

berkle4455 wrote: post #5

SPACs are setup by people who couldn’t figure out how to launch a DAO token scam.

I tend to agree lol

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#13

Post by albertopv » Tue, Dec 20, 2022, 8:27 PM UTC

I don't really know the company, how is it possible to lose so much money? It seems to me that 350 employees are too many for such low sales, maybe half, or a third or even less, could be sustainable.

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#14

Post by adriancr » Tue, Dec 20, 2022, 8:32 PM UTC

It's losing incredible amounts of money... how is it possible to still have 650M market cap when you lose almost as much money as you have revenue... and next year doesn't look that much better...

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#15

Post by smabie » Tue, Dec 20, 2022, 8:44 PM UTC

cheriot wrote: post #7

We need a better mechanism for companies to go public. The traditional IPO is a ripoff and SPACS are scams. It's great that companies like MariaDB are able to raise money in public markets, though.

Direct listings seem fine-ish.

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#16

Post by ibotty » Tue, Dec 20, 2022, 8:44 PM UTC

Can someone please explain what that means. I know MariaDB but understand pretty much nothing else here.

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#17

Post by strangattractor » Tue, Dec 20, 2022, 8:46 PM UTC

adriancr wrote: post #14

It's losing incredible amounts of money... how is it possible to still have 650M market cap when you lose almost as much money as you have revenue... and next year doesn't look that much better...

The SPAC is listed as a stock before there is really a company with a product. The value of that stock is defined by the capital put up for the SPAC. Once the SPAC merges with a real company the value of the stock is usually around whatever cash/capital put in originally.

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#18

Post by tofuahdude » Tue, Dec 20, 2022, 8:48 PM UTC

berkle4455 wrote: post #5

SPACs are setup by people who couldn’t figure out how to launch a DAO token scam.

Or is it the other way around?

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#19

Post by Sebguer » Tue, Dec 20, 2022, 8:49 PM UTC

tofuahdude wrote: post #18

berkle4455 wrote: post #5

SPACs are setup by people who couldn’t figure out how to launch a DAO token scam.

Or is it the other way around?

definitely the other way around, SPACs require up-front capital and a lot more connections!

Re: MariaDB plunges nearly 40% in NYSE debut after SPAC merger

#20

Post by greenyoda » Tue, Dec 20, 2022, 8:50 PM UTC

ibotty wrote: post #16

Can someone please explain what that means. I know MariaDB but understand pretty much nothing else here.

A description of how SPACs work can be found here: https://www.investopedia.com/terms/s/spac.asp