Shares of alternative fuels company Clean Energy Fuels (CLNE -3.88%) jumped as much as 17.5% in trading on Monday as it continued its popularity among meme-stock traders. Shares closed up 11.3% for the day.
Clean Energy Fuels stock was once again trending on Reddit today. Traders have gotten very bullish on the stock over the past week and shares are trading sharply higher as a result.
What we didn't see was any news out from Clean Energy Fuels itself that would indicate a reason investors should buy shares. In the past, partnership announcements, earnings, and fuel volume reports have moved shares, but they were all absent today.
The volatility of Reddit traders can work for and against stocks and right now the message boards are favoring shares of Clean Energy Fuels. But remember that prudent investors should be watching for fundamental improvement in the business, not just a stock climbing on a short squeeze or gamma squeeze.
Clean Energy Fuels has a lot of exciting growth opportunities in renewable biofuels and natural gas fueling, but it'll take time for fuel projects to be built and user adoption to increase. Until then, this will be a volatile energy stock that may be prone to pops and drops depending on how popular it is among Reddit traders.