While we’ve already heard about the surges at AMC (NYSE:AMC) and GameStop (NYSE:GME), those aren’t the only two to gain off the rush to meme stocks. Solar energy stock SunPower (NASDAQ:SPWR) also blasted upward, gaining over 66% at one point in Tuesday afternoon’s trading.
Thanks to this new run-up, SunPower managed to get within striking distance of the biggest single-day gain it’s ever seen. It’s pulled back somewhat from that level since then, as SunPower managed to rise as much as 86% in early trading on Tuesday. Meanwhile, as the meme stock buyers flood back into SunPower, so too do the short-sellers, who are gathering in great numbers to take on the stock.
S3 Partners‘ data suggests that short-selling interest in SunPower has nearly doubled—up 96%—based on the latest events.
But Is There a Reason?
Normally, meme stocks only surge because people just decide to pile in with little fundamental justification. But in this case, there might be a bit more to it than just memes; reports suggest that the recent spurt of enhanced tariffs from the Biden Administration may make SunPower a more attractive option by sending prices on Chinese-make solar panels spiking. Meanwhile, SunPower has been aggressively working to keep its costs in line and bolster its revenues, which should help in the long run. However, it’s still having some trouble keeping its cash flow in positive territory.
What Is the Forecast for SunPower Stock?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on SPWR stock based on 12 Holds and seven Sells assigned in the past three months, as indicated by the graphic below. After a 57.93% loss in its share price over the past year, the average SPWR price target of $3.26 per share implies 22.57% downside risk.
