Shares of solar energy stock SunPower (NASDAQ:SPWR) jumped as much as 12.9% in trading on Monday morning as energy stocks overall rose. Shares are up 12.6% at noon EDT and have been moving higher all morning.
The broad news in the market is that energy stocks are up sharply today. Oil is up 2.4% as I’m writing, in part because Merck is seeking authorization for a COVID-19 treatment, which could help fuel an economic recovery.
In general, higher energy usage and fossil fuel prices should help solar energy stocks, and that’s helping the industry today. But these tailwinds for the industry could reverse if the economy doesn’t keep growing or fossil fuel demand is held in check.
Solar energy stocks in general are up sharply today on the rise in energy commodity prices and a bullish market overall. But SunPower is leading the market, and that could be in part because of its recent shift to focusing on residential solar. The company announced that it’s going to focus on residential solar and bought Blue Raven Solar to expand its presence in the space. It’s a big bet for the company, but investors are responding positively to the move, and that may be a reason why SunPower is outperforming an already good day for solar stocks.
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