News By Tag
News By Location
Pandemic struck SunRun stocks reached ATH but now edging lower on Q2
Sunrun is a company that takes business in providing home batteries and solar panels.
The RUN stocks reached its record high last January 8th of this year, amounting to $96.50 a piece, which shows tremendous growth compared to January 2020's which was only about $14.
Currently, stocks are showing a huge dip at $44.96, which reflects a drop of more than 50% in price, which started gradually after the stock hit the record levels. One thing that is causing the traders to react this way is due to the structure of the company itself, in which the company heavily relies on the interest rates of the current market since what they offer is a long-term contract.
Studies show that a minor increase, as low as 1%, can change the tide of earnings to losses instead. And because of the recent market data available, traders tended to avoid growth stocks altogether which caused the fall of value.
There's also the lingering fear over inflation that may happen anytime, as the supply and demand shortage get even more pronounced that filling out job spots are even being highlighted. While the FOMC gave out their statement saying that adjustments to the current settings are not needed and that the inflation fears are just short-term, the fear was just further fueled by Secretary Yellen with her statement saying that inflation and increased tax rates will be beneficial for the point of view of everyone else due to its positive indication about the economic recovery.
With all that said, the RUN stocks are currently edging lower year to date are does not show any signs of changing trend unless new data is going to be presented that will justify the improvement of the stock's position. The company itself believes that the Q2 performance would be much better, and the stocks should follow so long as the interest rates would not spike.
For more latest news in US Stock Market, you may also visit us at Millennium Capital Management (Hong Kong) Limited through our website https://millennium-
Millennium Capital Management (Hong Kong) Limited