According to its CEO, Greenwave Technology Solutions (GWAV) could benefit from Donald Trump’s planned tariffs. Many companies will likely be compromised if the tariffs are implemented, which is expected to happen soon after Trump takes office. But Greenwave, which operates in the scrap metal recycling space, could potentially see its revenue increase if the tariffs lead to the same type of price hikes on imported aluminum and steel that U.S. manufacturers experienced during Trump’s first term, thereby creating more demand for recycled steel.
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What’s Happening with GWAV Stock Today?
So far, this tariff speculation has been excellent for Greenwave stock. Shares popped in premarket trading, and they have been rising steadily since markets opened. As of this writing, Greenwave is up 17% for the day and looks primed to continue making progress. The stock rose last week, only to start declining almost as quickly. However, today’s performance has pushed it to 15% gains for the past week so far, and this growth trend is likely to continue.
Greenwave still trades at the low end of the penny stock category with share prices hovering below the $1 mark. But as the company highlighted in a statement released this morning, it believes that Trump’s tariffs will significantly drive revenue for it. CEO Danny Meeks cites Trump’s first term in office as an indication that Greenwave is likely to benefit from the looming tariff policies.
It is true that GWAV stock surged in 2018 during the height of the trade war. If this trend repeats, the company will be in an excellent position to benefit from the rising domestic steel prices that will stem from Trump’s proposed tariffs against China. Greenwave states that “industry leaders place significant value in scrap metal operators,” noting that its client list includes companies such as Cleveland Cliffs (CLF) and Nucor (NUE), which may seek to purchase more recycled scrap metal in the coming years.
Is Greenwave Stock a Buy, Sell or Hold?
Since no Wall Street analysts follow Greenwave stock, it is hard to properly assess which rating it deserves based on expert opinions. That said, the TipRanks Technical Analysis tool suggests a Sell signal on the one-day timeframe, based on overall bearish sentiment.
