Shares in the Fundrise Growth Tech Fund (VCX) soared by 44.51% on Monday alone and are up by more than 183% over the last five days. This comes as key holdings OpenAI and Anthropic continue to attract headlines in the build-up to their market debuts, which are widely anticipated in the final quarter of this year.
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Why Did VCX Jump 45% in One Day?
The rally is likely triggered by news such as Anthropic’s reported plans to spend $200 billion on Google’s (GOOGL) cloud services and chips over a five-year period. There is also the recent reworking of the partnership terms between OpenAI and Microsoft (MSFT) that will enable the startup to pursue earnings opportunities outside the tech giant.
Both startups lead in the AI race and are expected to raise billions of dollars from their IPOs, with their valuations topping $1 trillion each.
VCX was created in July 2022 but went public in New York in late March. The firm offers retail traders access to private tech companies, including big data platform Databricks, aerospace firm SpaceX, defense tech startup Anduril, and fintech Ramp. The first three are seen as front-runners for an initial public offering this year.
Retail Investors Pile Back into VCX
Shares in the fund cratered in late March following an attack from Citron Research, which criticized VCX’s massive trading premium relative to its net asset value. The short-seller also questioned the credibility of the fund’s sponsor and pointed to an exit risk when the capital lockup window for the fund’s first 100,000 investors expires in September.
However, investors have been returning to the fund since then, although the shares remain very volatile. For instance, despite the massive gain on Monday, VCX stock dropped over 6% during Tuesday’s pre-market session.
Is VCX a Good Investment?
TipRanks’ overall consensus technical indicators suggest that Fundrise Growth Tech Fund’s shares remain a Strong Buy. This is based on one Neutral and five Bullish signals recorded over the past month.
