In This Article:
Shares SunPower (SPWR) are tanking around 30% on Friday morning after the company reportedly notified dealers that as of September 17 it will no longer support new leases and halt shipments. This comes after the company's announcement in April that it will have to restate almost 2 years of financial results.
Morning Brief Anchors Brad Smith and Seana Smith break down the latest development for SunPower and what it could mean for the company moving forward.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Nicholas Jacobino
SunPower shares are plunging after notifying dealers that as of September 17th, it will no longer be supporting new leases. We'll be halting shipments. This comes after the company's April announcement that it will have to restate nearly two years of financial results. We're looking at losses. The stock just above a dollar a share off 31% right now. Pepper Piper Sandler and Evercore both are suspending their coverage on SunPower following this letter here to dealers of Guggenheim analysts believing that the news effectively marks the end of SunPower as an operating business. And you can see that reflected in the reaction that we're seeing in shares today here, Brett.
Now, that is uh extremely alarming, and I think investors are doing the right thing and and and dumping where uh we have seen to that extent over today's activity down 31%. Look at that five-day activity down by about 50 per well 60% in 5 days and three months, down 52% here. They say that they continue to dedicate their attention to address the financial position, actively working to navigate the current challenges here. And this stems back to some of the internal documents that were originally reviewed by Reuters, confirmed by the company as well, informing clients and telling them that they're going to be having some operations that will be paused, leasing and power purchase agreements that would be deactivated as well from its sales platform, plus not putting out new product shipments here.
Yeah, and also just going back to that Guggenheim note. So you're asking maybe what exactly this means for others within this space. The team there noting that market share is up for grab. They actually see Sunnova energy as a as the most likely beneficiary here, given their dealer focus model, also willingness to pursue growth. So again, when you're trying to identify maybe other potential beneficiaries there, Guggenheim naming a Sunnova energy as one of those names.
