What Happened:
Shares of aI-driven clean energy solutions provider Stem (NYSE:STEM) fell 44% in the morning session after the company reported second quarter earnings results. Revenue and EBITDA both missed. In addition, its full-year revenue guidance was lowered by a large amount and missed. Adjusted EBITDA was also lowered by a lot and missed. Overall, this was a weaker quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Stem? Access our full analysis report here, it's free.
What is the market telling us:
Stem's shares are very volatile and over the last year have had 102 moves greater than 5%. But moves this big are very rare even for Stem and that is indicating to us that this news had a significant impact on the market's perception of the business.
Stem is down 84.2% since the beginning of the year, and at $0.59 per share it is trading 91.3% below its 52-week high of $6.81 from August 2023. Investors who bought $1,000 worth of Stem's shares at the IPO in October 2020 would now be looking at an investment worth $60.82.
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