In the tumultuous world of the stock market, the SPI energy stock’s rise and fall have proven the stock market’s brutality once again.
On Wednesday, several companies faced terrible benchmarks. This downward trajectory has worried several investors as well. However, an unpredictable surge and fall of SPI Energy stocks has pleasantly surprised the stock market.
As investors are always keeping an For for any sign that indicates souring market, many witnessed the classic stock market phenomenon with SPI Energy.
Who Is SPI Energy?
SPI Energy was introduced in the year 2006. It provides services for solar power technology systems. In 2015, the company relocated to China. In 2016, the company started its journey in Nasdaq trading. It’s quite an average company with nothing much to note.
Although SPI Energy had a slow beginning, it’s journey was to get much worse. While trading in Nasdaq, SPI Energy saw more than half of its stock fall within just the first two trading weeks. Things got much worse, and the continued downward trend forced SPI Energy to take drastic measures. In 2017 and 2018, the company did 1 for 10 reverse splits. However, things did not improve. SPI Energy stock stools at $1 per share by March this year. Even though the company managed to not get kicked out of Nasdaq stock market exchange, its stock remained near the $1 per share level.
But as we mentioned before, things took a u-turn today.
SPI Stock Soars High As Stock Market Investors Approve Company’s Expansion
On Wednesday, the company announced that they are planning on engaging with charging technology and electric cars.
Xiaofeng Peng, the company CEO, took the example of Tesla and said that the need for renewable energy modeled businesses is on the rise. With the company’s latest subsidiary, EdisonFuture, SPI Energy Can position itself better in this field.
Within a few hours, the SPI Energy stock increased from $1.03 per share to $46.67 per share. It’s stock market capitalization went up to a ridiculous $700 million.
However, within hours, SPI Energy stocks decreased to $14 per share. Even though this is an improvement for the company, it still meant heavy losses for some eager investors. To be specific, some buyers list around 70 percent of their investment within a matter of hours.
This classic stock market phenomenon has occurred time and again. Whenever the market identifies a trend, they try to capitalise on it by somehow trying to incorporate the trend into their business model. We saw this with the explosion of bitcoin.
Even though some select companies managed to ride a trend successfully, many failed. As the trend fades, investors move on from one trend to another.
