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The wild rides on Wall Street continue, but for Amprius Technologies (NYSE:AMPX), the stock is roaring. Shares of AMPX stock are currently up close to 40% on the day.
At the same time, the S&P 500 has given up all of its gains for the session and is now trading below Wednesday’s low. While the index fell hard on Wednesday after the Federal Reserve raised interest rates, it was up 1.8% at one point on Thursday.
For Amprius’ part, though, shares have been booming all afternoon. The crazy part? AMPX stock only opened higher by about 1.6% and has gained steam all session long.
The company’s recent announcement of its latest battery platform is driving the rally. From Amprius Technologies:
“At approximately half the weight and volume of state-of-the-art, commercially available lithium-ion cells, the all-new battery cell delivers potential industry-disrupting performance with barrier breaking discharge times.
Amprius’ next-generation cells are well positioned to power products in the fast-growing aviation and, eventually, electric vehicles markets, estimated to be collectively over $100 billion in battery demand by 2025.”
What’s Next for AMPX Stock?
The stock has been on fire all week, which is not what many investors may have expected, given the stock market’s volatility. In fact, many investors may not even be aware of this company.
Shares have scorched higher this week, gaining almost 14% on Tuesday and 8% on Wednesday. Just from this week’s low, the AMPX stock has nearly doubled, up 92%. Amid the move, the company now sports a market capitalization of roughly $650 million.
There seems to truly be a lot of enthusiasm surrounding the company’s new product. That’s particularly true, given the potential market size for these batteries.
According to Jon Bornstein, president of Amprius, “These cells provide a run time of 200% compared to state-of-the-art graphite cells, while being lighter and smaller than other batteries with the same energy content.”
One problem: The company does not generate meaningful revenue at this time. Then it also shouldn’t be too surprising that it operates at a loss.
In and of itself, that’s not a huge problem. But it’s hard to get incredibly bullish on a company that generates very little revenue today on the hopes and promises that it will generate substantial revenue tomorrow.
Stocks can get away with that during a bull market with more speculation and a lot of liquidity. However, at a time when liquidity continues to tighten, and volatility remains high, potential speculators should keep that in mind with AMPX stock.
That doesn’t mean the company can’t succeed. It only means that investors should understand this risk in the intermediate term.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.