Shares of Better.com, a digital mortgage company, have drastically declined following its long-awaited SPAC merger and public debut. The company’s decision to go public in 2021 at a $7.7 billion valuation seemed promising at the time, with a profitable year and low mortgage interest rates. However, as the housing market slowed and the company faced financial challenges and negative publicity, it began laying off employees and experiencing significant losses. Despite these setbacks, Better.com persisted with its SPAC plans and completed the merger, but its share value has plummeted more than 90% in a single day.
This decline is not uncommon in the world of SPAC deals. The company’s CEO has expressed optimism for the future, citing a turnaround in the housing market and the potential of Better.com’s technology. With its newfound capital, Better.com will now operate as a public company, facing regular earnings reports and the opportunity to raise more capital through stock sales. Despite this, investor confidence appears low.