Why SmartRent (SMRT) Stock Is Up Today

What Happened?

Shares of smart home company SmartRent (NYSE:SMRT) jumped 8.9% in the pre-market session after reports indicated that President Trump was expected to issue executive orders to boost the nuclear energy sector. This news provides a significant tailwind for companies like NuScale, specializing in small modular reactors (SMRs). 

The prospect of increased government support and a renewed focus on nuclear power for energy-intensive applications, such as data centers for AI, likely drove renewed investor optimism in the space. This comes amidst a broader interest in nuclear energy as a reliable, carbon-free power source.

After the initial pop the shares cooled down to $0.79, down 2.4% from previous close.

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What The Market Is Telling Us

SmartRent’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock dropped 29.5% on the news that the company announced that sales for Q1 2025 would fall 18-20% compared to the previous year, raising concerns about weakening demand and competitive pressures which could negatively impact investor confidence and future growth prospects. 

Compounding the uncertainty, President and CEO Shane Paladin resigned, prompting the board to appoint Chairman John Dorman as interim CEO. The leadership transition, particularly during a period of financial underperformance, may deepen market anxiety regarding the stability of the business while the board searches for a permanent successor.

SmartRent is down 54.7% since the beginning of the year, and at $0.79 per share, it is trading 69.1% below its 52-week high of $2.57 from May 2024. Investors who bought $1,000 worth of SmartRent’s shares at the IPO in February 2021 would now be looking at an investment worth $71.44.

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