Talkspace: A Deserved Decline May Have Gone A Bit Too Far

Summary

• Even by the standards of the SPAC bust, Talkspace has been a notable underperformer.
• There are a number of good reasons for a decline, including margin compression, sector pressure, and a clear risk to the long-term revenue outlook.
• Still, a 60%-plus decline does seem potentially overwrought, and there are some potentially transitory factors at play.
• The short- and long-term concerns are real, but investors willing to catch a falling knife should take a look at TALK stock.

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According to SPACTrack.net, 147 de-SPAC transactions (mergers between operating companies and special purpose acquisition companies) have closed so far in 2021. Exactly two have performed worse than Talkspace (NASDAQ:TALK) stock.

At Friday's close of $3.84, Talkspace stock is off more than 60% from

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.