Shares of Star Peak Energy Transition (NYSE:STPK) dipped 22.2% in March, according to data from S&P Global Market Intelligence. The special purpose acquisition company (SPAC) had posted huge gains following the announcement of its upcoming merger with energy storage specialist Stem, but its stock lost ground amid a widespread sell-off for growth-dependent technology stocks.
Investor confidence in stocks with heavily growth-dependent or otherwise speculative outlooks wavered in March, and Star Peak’s share price took a significant dip as a result. Star Peak’s share price also dipped in conjunction with the publication of Stem’s full-year results.
Stem published its full-year fiscal results on March 15. Management said revenue for the period more than doubled year over year and came in approximately 10% higher than its estimate at the time the Star Peak Energy Transition acquisition was announced.
Stem uses artificial intelligence (AI) technologies to improve storage efficiency for fuel cells, and bulls are hoping that the company can play a significant role in pushing the clean energy space forward. Battery storage technology is one of the main bottlenecks for green energy power sources including solar panels and wind turbines, and increasingly efficient storage solutions could help pave the way for greater sustainable energy adoption.
Star Peak Energy stock has climbed early in April’s trading. The company’s share price climbed roughly 1.5% on the month’s first trading day.
Star Peak’s merger with Stem was previously expected to go through by the end of March, but the companies will now hold voting on April 27 to vote on the combination. It’s very likely that the combination will be approved, at which point the merged company will operate under the Stem name and trade under ticker “STEM” on the New York Stock Exchange.
Stem CFO Bill Bush anticipates that the company’s annual sales will increase fourfold this year.
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