Remember that friend who always threatens to quit their job but never actually does it? Well, that’s basically Trump with trade wars, and Energy Fuels (UUUU) just rode that emotional rollercoaster straight to the bank.
Here’s what happened: Trump spent the weekend rattling sabers about slapping more tariffs on China (because apparently we haven’t had enough drama lately). Markets freaked out, as they do. Then Sunday rolls around and Trump’s like “Actually, everything’s fine, we’re all good here.” Classic.
But here’s the kicker – Energy Fuels didn’t just bounce back, it absolutely exploded. We’re talking 20% up in a single afternoon session on Monday. Over the past five trading days? A casual 41% gain. And get this – the stock is up 377% for the year. That’s not a typo.
So what’s the deal with this company that most people have never heard of? Energy Fuels is basically sitting on the stuff that makes our AI-powered future possible – rare earth minerals and uranium. You know, the boring rocks that power everything from your smartphone to those massive data centers running ChatGPT.
The Trump trade tension fake-out reminded everyone that we probably shouldn’t rely on China for literally everything, especially the materials needed to keep our tech revolution humming. Suddenly, having a domestic supplier of these critical materials doesn’t sound so boring anymore.
Now, before you start throwing your life savings at UUUU, let’s talk about the elephant in the room. When a stock goes up 377% in a year, you’re not exactly getting in on the ground floor. This thing is priced for perfection, and then some.
But here’s where it gets interesting (and a little weird). Energy Fuels has a short interest of 13.54% – meaning a lot of smart money is betting against it. Normally, that would make you nervous. But sometimes, when a stock keeps defying gravity like this one has, those short sellers start to panic.
Picture this: You’ve been betting against a stock that just won’t stop going up. Every day it climbs higher, you’re losing more money. Eventually, you crack and buy shares just to stop the bleeding. Now multiply that by thousands of traders, and you’ve got what’s called a short squeeze – basically a feedback loop that can send prices into orbit.
The math nerds tell us there’s only a weak inverse relationship between UUUU’s price and its short interest (correlation of -36.75% for those keeping score). Translation: the shorts haven’t given up yet, which means there’s still potential for fireworks if this rally continues.
Look, nobody knows if Energy Fuels will keep this insane run going or if it’ll come crashing back to earth faster than you can say “rare earth minerals.” What we do know is that the company is positioned in a sector that’s absolutely critical for our tech-dependent future, and sometimes that’s enough to keep the party going longer than anyone expects.
Just remember – in the stock market, as in life, what goes up really fast can come down even faster. But hey, at least it’s been one hell of a ride.