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 (NASDAQ:SCTY) jumped 10% at the open today after soaring 47% from their IPO price yesterday.
So what: The bounce this morning was short-lived and shares are now only up about 1%. The good news is that yesterday's gains haven't evaporated.
SolarCity finally reached the market at $8 per share after a touch and go IPO process. The company initially thought it could command $13-$15 per share in a $151 million IPO, but the number was brought down to $8 in the last 48 hours before the IPO.
Now what: SolarCity has a lot of questions ahead, as I pointed out before the IPO, so judging the performance of the last two days isn't wise. The company has an interesting opportunity in a growing U.S. solar market but it also may have to pay investors and the Treasury Department back for overstating the value of its solar installations. That said, it will be an interesting company to watch in the coming years. For now, there are too many questions for me to buy at the current price but if the IPO bubble pops over the next few months it may be worth revisiting.
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Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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