Humongous run
Before blowing the bubble, SPI stock went wild on Wednesday by ending up 1236%, recording a whopping trading volume of nearly 350 million shares. SPI shares, which reached a day’s low of $0.97 during Tuesday, registered its 52-week high ($46.67) the next day.
What happened?
The Santa Clara, California-based company’s announcement to launch a unit to design and develop electric vehicles and charging solutions triggered the stock movement on Wednesday. The new unit has been named as EdisonFuture, keeping in mind the peer companies Tesla (NASDAQ: TSLA) and Nikola Corp (NASDAQ: NKLA).
EdisonFuture is based in Silicon Valley and it complements SPI Energy’s current suite of PV solutions, including solar and battery storage technologies. EdisonFuture will focus on the design and development of new EV technologies and plans to partner with major manufacturers.
Financials
For the fiscal year ended December 31, 2019, SPI Energy’s loss expanded to $15.1 million from the $12.3 million in 2018. Revenue decreased to $97.9 million in 2019 from $125.6 million in 2018. SPI Energy had a working capital deficit of $113.5 million as of December 31, 2019.
Also read: JinkoSolar (JKS) Q2 2020 Earnings Call Transcript
Final word
The reason for the upward movement was also partially related to JinkoSolar’s (NYSE: JKS) upbeat quarterly results. Also, Tesla’s battery event added momentum to the SPI’s announcement as investors were keeping an eye on renewable energy stocks. As the traders were ready to take more risks on the penny stocks, SPI stock could have popped up on Wednesday. The performance of SPI Energy will be keenly watched by the market in the future.
DISCLAIMER: This article does not necessarily imply the views of AlphaStreet, and contains opinions of the author alone.