SolarCity Corp (NASDAQ: SCTY)
If you follow my writing here or elsewhere, you know that I’ve maintained a relatively bullish opinion of what we can expect to see from SolarCity. The truth is, that opinion has not changed. In fact, due to recent news, I’ve become even more bullish. According to the news, the company is pushing solar tech further than its ever been. Today, we’ll talk about the recent news, how the market is reacting, and what we can expect to see from SCTY moving forward.
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SCTY Pushes Solar Tech Even Further
As mentioned above, SolarCity is making headlines once again. The headlines revolve around the company’s ability to push solar technology in a long-lasting direction. According to a recent announcement from the company, a new report shows that the company’s solar power systems have a usable lifetime of 35 years. This is great for SCTY because this estimated lifetime is about 40% longer than experts expected.
On top of the news that the company’s solar panels last longer, there was more positivity offered. According to the release, the company’s products are strong in terms of degradation. Degradation is the annual efficiency loss of solar panels. According to the announcement, solar panels provided by SCTY experience 35% less degradation than similar comparable industry-wide selections of non-SolarCity panels.
How The Market Reacted To The News
As investors, one of the first things that we learn when we get started in the market is that it’s incredibly important to watch the news. After all, the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the company. Adversely, negative news will lead to declines. In the case of SCTY, the news was overwhelmingly positive. So naturally, we’re seeing gains in the stock as a result. Currently (1:39), the stock is trading at $24.16 per share after a gain of $0.50 per share, or 2.11%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion with regard to what we can expect to see from SCTY. First and foremost, the news released proves that the company’s products show statistically significant improvements over the competition. This should lead to higher demand for their products, generating stronger sales volumes.
However, that’s not the only reason I take such a bullish stance on SolarCity. The truth of the matter is that the company is in the right industry at the right time. At the moment, the entire world, including consumers, businesses, and even governments are looking for ways to reduce their carbon footprint on the planet. One of the best ways to go about doing so is converting to solar power. As a result of this shift in tides in the energy industry, demand for solar is likely to explode further.
On top of that, SCTY is currently in talks with Tesla with regard to being acquired. If an acquisition does happen, the company will demand a premium, offering investors a strong return.
Finally, SolarCity’s business model is different from most solar companies. Instead of focusing on building solar power plants, the company is focused on rooftop solar. This puts the control over energy in the hands of the consumer. Ultimately, this alone makes the company incredibly appealing. All in all, things are looking great for SCTY.
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What Do You Think?
Where do you think SCTY is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
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