LiveWire IPO Swings to Harsh Decline in NYSE Debut
The LiveWire IPO had an up and down debut on the New York Stock Exchange (NYSE). In general, the Harley Davidson spinoff was strong initially before a drastic decline on its first trading day. Therefore, let’s take a closer look at this SPAC merger and its market potential moving forward.
LiveWire IPO Update
LiveWire is a subsidiary of Harley Davidson Inc. (NYSE: HOG) that produces an electric motorcycle known as the S2 Del Mar. It has a 110-mile range, 75-minute charging time and it can reach 0-60 MPH in 3.1 seconds. You can reserve one now starting at $16,999. In fact, its first limited edition run sold out in just 18 minutes.
Now the company has become the first electric motorcycle manufacturer to become publicly-traded by way of the LiveWire IPO. This subsidiary of Harley Davidson went public via a SPAC merger with AEA-Bridges Impact, which formerly traded under the ticker symbol “IMPX.”
LiveWire stock is now trading under the ticker symbol “LVWR.” A day before the merger was complete, shares of AEA-Bridges Impact were soaring upwards of 30% around the $9 mark. However, the stock realized a sharp decline once the LiveWire IPO went into effect. It’s now trading around $7.50 after hitting a high of $10.68 on its first trading day.
LiveWire Stock Market Potential
Harley Davidson is one of, if not the most powerful motorcycle brand in the world. And now it’s using this power to take hold of the electric motorcycle market. The transition to sustainable energy and EV’s is well underway. That’s why there is so much interest behind the LiveWire IPO.
The demand is high and its S2 Del Mar model is selling out quickly. The concept was unveiled back in 2014 and it’s now become the hottest electric motorcycle on the market. Its fiercest competitors include private companies such as Zero, Energica and Vespa.
Zero seems to be its biggest threat at the moment. Zero has seven different electric motorcycle models that include a street bike, supermoto, dual-sport and motocross. They’re making waves within the industry, but the backing and brand recognition of Harley Davidson will do wonders to help LiveWire make its mark.
And this is great news for investors. We’ve already seen the success of EV stocks such as Tesla (Nasdaq: TSLA). Now the first publicly-traded electric motorcycle manufacturer has hit the market. Only time will tell if this stock has massive upside potential in a rapidly growing industry. The current low barrier to entry is enticing for investors.
But it’s also important to look at the bigger picture. For instance, Harley Davidson stock is trading around $35 with a 52-week high of $44.46. In the past, it has traded in the $70 range but never really took off despite its dominance within the motorcycle industry. Does this mean a similar path is inevitable for the LiveWire IPO? If so, this is a good sign for long-term investors and a concern for short-term traders.
Investing in IPOs
The IPO process is long and can be grueling for companies. That’s why many businesses favor a SPAC merger instead. It’s a quicker process in general. To learn more about the SPAC’s and upcoming IPO’s, consider signing up for one of the best investment newsletters. These market experts have decades of experience breaking down stock potential and upcoming debuts. You can use this research to help you protect and enhance your portfolio during a difficult market.
The current market is in a downturn due to recession fears and high inflation. In addition, the LiveWire IPO is sure to face high volatility over the coming days and weeks ahead. You may want to keep a close watch on this stock as it drives forward. And as always, do your due diligence before making any investment decisions in this bear market.