Another Broken SPAC

Soren Aandahl of Blue Orca Capital shares the investment opinion that STEM Inc (STEM) is a broken SPAC whose special AI software business is a mirage. Blue Orca presents evidence that STEM covertly finances its flagship customer, disguises hardware lease payments as software revenues and peddles bogus non-GAAP metrics, all while insiders dump stock. At its core, STEM is a deeply unprofitable business which, to no one’s surprise, has provoked numerous warnings from its auditor.