Angel Studios (ANGX) Plunges 32.28% Amid SPAC Merger, Valuation Scrutiny

Angel Studios (ANGX) plunged 32.28% on Wednesday, marking its second consecutive day of losses and a 44.94% drop over two days. The stock hit an intraday low, with a session decline of 41.05%, as market sentiment deteriorated amid growing concerns over its financial performance and valuation sustainability.

The recent SPAC merger with Southport Acquisition Corporation, completed on September 10, 2025, has become a focal point for investors. The $1.6 billion transaction, which listed Angel Studios on the NYSE under ANGX, initially generated optimism but has since faced scrutiny. The company’s elevated price-to-sales ratio of 18.5x—far exceeding the US entertainment industry average of 1.9x—has raised questions about whether its valuation aligns with its unprofitable operations and declining revenue. Analysts have highlighted a fair value estimate of $13.26, suggesting the stock may be overextended relative to traditional metrics.

Angel Studios’ business model, centered on community-driven content creation and streaming, differentiates it from traditional media peers. However, its reliance on speculative growth narratives has left it vulnerable to market corrections. The lack of consistent profitability, coupled with net losses and a failure to reverse revenue declines, has intensified doubts about the company’s ability to justify its premium valuation. The SPAC structure, while providing access to capital, has also amplified short-term volatility as investors balance optimism about innovation with skepticism over execution risks.

Broader macroeconomic pressures further complicate the outlook. The entertainment sector remains sensitive to consumer spending trends and competitive dynamics, particularly from established streaming platforms. Angel Studios’ pivot to public ownership has drawn attention to its capital-intensive operations and the need for a clear path to profitability. While the company’s community engagement model offers long-term potential, its success hinges on adapting to shifting market demands and technological advancements—a challenge that could weigh on investor confidence in the near term.

With the SPAC merger now complete, attention will turn to whether Angel Studios can translate its unique value proposition into tangible financial results. For now, the stock’s sharp decline reflects a market recalibrating expectations amid a backdrop of unproven growth and structural uncertainties.