STPK Stock News: 7 Things to Know Ahead of the Stem SPAC Merger

The SPAC boom continues today. Indeed, investors in Star Peak Energy Transition (NYSE:STPK) and STPK stock are seeing a lot of green. STPK stock has seen gains of more than 20% at the time of writing.

A concept photo of different energy storage systems.

Source: Shutterstock

This move seems odd, considering the relative lack of news on Star Peak today. The company’s announced merger partner, Stem, has also produced little news. The proposed merger will be voted on during a scheduled meeting on April. 27. Indeed, a month is a relatively long time to wait in the SPAC world for news.

Accordingly, it appears SPAC speculators are once again hard at work with STPK stock today. There’s been a significant amount of recent chatter on Reddit and Twitter of late. This chatter centers on the idea that some sort of partnership with Tesla (NASDAQ:TSLA) could be brewing. Currently, it appears this chatter is pure speculation. A Redditor suggested in an initial post that Stem’s AI software could be used on top of Tesla’s Powerwall which will reportedly power New York’s first small virtual power plant.

That said, those on Twitter appear to be taking the view some sort of deal is pending between the two companies. A clarification post from the initial Redditor in question suggested that there’s likely no deal pending. Rather, Stem/STPK stock is a play on long-term potential growth for the company’s existing software which has been used on batteries from many battery manufacturers, including Tesla’s.

Moving away from the speculation a bit, let’s look at what the Star Peak-Stem merger looks like for interested investors.

STPK Stock Soaring on Anticipation of Stem Merger

  • As mentioned, the completion of the merger may take some time. Initially, the company expected to close the deal in the first quarter, but that has been delayed pending a vote on the combination.
  • According to reports, Stem is currently valued at a pro forma market capitalization around $4 billion, trading at the $30 level today.
  • Stem touts itself as a global leader in AI-driven clean energy storage systems. The company’s AI software, Athena, is used to optimize energy usage.
  • The software allows for automatic switching between battery power, onsite generation, and grid power.
  • Accordingly, those intrigued by the recent announcement of a small virtual power plant in New York have jumped on this stock of late.
  • In addition to the merger announcement, the company also announced a key executive appointment. The company will be bringing on Chris Mathey to lead government relations and federal initiatives.
  • Indeed, investors are betting not only on Stem’s software offering, but its ability to push this technology forward today.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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