SunPower (NASDAQ:SPWR) has been benefiting immensely from the solar power industry’s growth, which is being driven in-part by the Biden administrations’ push for a clean energy transition in its effort to address climate change concerns. However, the stock’s price has tumbled 47.3% over the past four months. So, now that the solar industry has hit a rough patch because of rising module prices, the question is will that weigh on SPWR’s stock price in the near term? Let’s discuss. Read on.Solar solutions provider SunPower Corporation (SPWR) specializes in solar power generation and energy storage, and operates through four segments: residential, light commercial; commercial and industrial solutions; and others. The company’s continuing residential business momentum and robust pipeline growth has helped the stock gain 270% over the past year. However, SPWR’s stock has declined 27.9% over the past three months and 47.3% over the past four months. Closing yesterday’s trading session at $25.90, SPWR’s stock is trading 55% below its $57.52 all-time high.
Although the renewable power generation sector has expanded at a fast pace over the past couple of years, the rising price of solar modules could lead to a slowing in uptake of solar power, in both the residential and commercial segments.
SPWR is still struggling to turn its revenues into profit. Furthermore, its increasing losses and net debt could prolong investors’ bearish sentiment.