Why SolarCity's Stock Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of SolarCity jumped 27% today after the market finally realized what a big deal Goldman Sachs' financing package is.
So what: Yesterday, Goldman and SolarCity announced a $500 million financing package that will allow the solar installer to put up 110 MW of projects. This isn't the first financing package for the company, but it's a huge package and having Goldman on the release brings some cache.
Now what: This is really business as usual for SolarCity, so I don't think yesterday's 11% jump, or today's 27% pop, are really justified. The news that Goldman was involved may have brought in some new investors who hadn't considered solar, pushing the stock higher. I think shares have run way too high, and expect a pullback, because the company is still posting losses each quarter.
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The article Why SolarCity's Stock Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.