Following a nearly 20% increase on Monday, SunPower rose nearly 60% on Tuesday, reaching an intraday high of $5.63 during the year.
The Zhitong Finance App learned that after rising nearly 20% on Monday, SunPower (SPWR.US) rose nearly 60% on Tuesday, and once rose to an intraday high of 5.63 US dollars; the stock has accumulated a cumulative increase of more than 90% since this week. SunPower's rebound was driven by the meme stock boom. Since this week, other meme stocks such as GameStop (GME.US) and AMC Cinemas (AMC.US) have also seen sharp increases.
Investment bank Raymond James analyst Graham Price said, “I strongly doubt that this is a typical bearish squeeze and may be related to these other meme stocks.” He pointed out that SunPower's stock is an ideal bearish target because the stock has very high short positions and a very low level of tradable shares because most of the shares are held by Total (TTE.US).
GLJ Research analyst Gordon Johnson said that unlike other stocks, SunPower has just granted a large number of low-priced warrants to Total and BlackRock (BLK.US), and cannot issue shares on the market without delaying financial reporting. As a result, SunPower was unable to use “irrational fluctuations in stock prices to support its cash position” and maintain a “sell” rating on the stock, with a target price of $1.60, he added.
Gordon Johnson also believes that from a liquidity/financial situation perspective, anyone buying SunPower shares driven by the return of US retail “big brother” Keith Gill to social media platforms has no idea what they actually bought.