Is Solar Stock SunPower (SPWR) Soaring 50% on China Tariff News or Meme-Rally?
Investors are reacting positively to the recent tariff news announced by the Biden Administration, as solar and EV company shares are taking off. SunPower Corporation (SPWR) is leading the PRISM Emerging New Energy Index as its trading upwards ~50%. Speculative reports are not just citing the tariff as the cause for this large gain on the day.
Investors are also partaking in another “meme-stock” run as short sellers are also increasing their bets on the energy name. Raymond James analyst Graham Price who covers the clean energy sector stated, “My strong suspicion is this is a classic short squeeze probably connected with the rest of these meme stocks.” Even more insightful, SunPower is no longer a manufacturer of solar cells therefore, this run may likely be even further related to the meme stock rally rather than the tariff news, creating a potential short squeeze scenario. Yesterday’s headlines that meme stock investor Keith Gill aka Roaring Kitty, has resurfaced is being cited as what has prompted this recent rally including AMC and GameStop.
