Should I buy Stem stock in 2025?

What is Stem?

How much is the Stem stock?

The price of Stem stock is falling this week. As of the most recent data, Stem (NYSE: STEM) trades at USD $0.4628, down 0.52% over the past 24 hours, and has dropped 1.71% for the week.

The company’s market capitalization stands at $77.39 million, with an average three-month daily volume of 4.13 million shares.

Stem is currently unprofitable, so its P/E ratio is not applicable, and it does not pay a dividend (yield N/A). The stock displays high volatility with a beta of 2.00.

Investors in New Zealand should note this elevated volatility, which presents both risks and opportunities for those seeking growth exposure in the clean energy technology sector.

Our full analysis on the Stem stock

After thoroughly reviewing Stem Inc.’s latest financial results, stock performance over the past three years, and aggregating a blend of expert analysis—including financial indicators, technical signals, and the competitive landscape—our proprietary methodology highlights the most actionable insights on the stock’s current positioning. The convergence of technical data and improving fundamentals suggests that investors could be standing at a pivotal juncture. So, why might Stem stock once again become a strategic entry point into the fast-evolving clean energy and AI-enabled technology sector in 2025?

Recent Performance and Market Context

Stem’s journey over the previous 12 months has been characterized by significant volatility, mirrored across the broader renewable energy sector. Despite a 66% decline year-on-year, the stock has shown resilience: up 4.66% over the past six months and trading near its $0.46 price level as of 30 May 2025. Notably, Q1 2025 results marked a turning point—delivering 27% year-on-year revenue growth, a record 32% gross margin, and positive developments in cash flow and profitability metrics.

This performance arrived amid a macro backdrop supportive of the energy transition: global decarbonisation policies, surging demand for grid-balancing infrastructure, and increasing institutional adoption of AI-driven software for clean energy asset optimization. Furthermore, sector peers have benefited from policy momentum favoring electrification and digital energy management—bolstering the overall investment case for leaders like Stem.

• Strong Q1 2025 outperformance versus Wall Street estimates (revenue above consensus, EPS beat).
• Well-received strategic pivot focusing on higher-margin software and services over hardware sales.
• Upward price target revision by Susquehanna to $0.60, implying notable upside from current levels.
• Positive after-hours sentiment (+1.59%) tracking alongside a steady uptick in institutional interest.

This context—marked by sector tailwinds, operational improvements, and constructive analyst reassessments—aligns favorably for a potential bullish inflection in Stem’s share price.

Technical Analysis

The technical landscape surrounding Stem currently presents a blend of stability and early signs of renewed momentum:

• Relative Strength Index (RSI) sits at 45.5: This neutral level avoids overbought risk while suggesting ongoing consolidation—often a precursor to a technical bottom.
• MACD and Williams %R offer buy signals: The MACD is nudging positive territory (<0.01), and Williams %R reads -56.22, both hinting at building bullish undertones.
• CCI at -109.35 amplifies the buy signal, historically associated with the end of prolonged downtrends.
• Price and moving averages: The stock is currently above its 50-day moving average ($0.43) but below the 20-, 100-, and 200-day lines. This subtle crossover signals potential for a medium-term upward move should price reclaim the $0.50 resistance.
• Support and resistance: Prominent technical support is established at $0.40, with clear resistance at $0.50. Trading consistently above support, while approaching resistance, is a classic set-up for an upside breakout—especially amid improving underlying metrics.

While recent signals have alternated between neutral and bullish, the interplay of price with these technical benchmarks provides investors with a compelling risk/reward proposition. Bullish reversals in related tech names have often occurred on similarly mixed, but strengthening, signals.

Fundamental Analysis

Stem’s fundamental picture in 2025 underscores tangible progress across its core KPIs, suggesting renewed investor interest is well founded:

• Revenue Acceleration: Q1 2025 delivered $32.5 million, a robust 27% YoY increase—outpacing both consensus and sector averages.
• Gross Profit and Margin: For the first time, positive gross profit ($10.5 million) and record gross margin (32%) were achieved—a testament to successful execution on higher-margin software.
• Software Revenue Performance: The 17% YoY increase in software revenues validates the company’s pivot away from commoditized hardware.
• Valuation Metrics: With a $77.4 million market capitalization and a trailing price-to-sales (P/S) ratio that compresses as growth accelerates, Stem currently trades at a significant discount to long-term intrinsic value—especially for investors targeting exposure to AI and renewables.
• Strategic Strengths:
• Proprietary Athena® software for energy asset management—a clear competitive moat.
• Diverse commercial and utility customer base.
• Ability to leverage AI for enhanced grid services, aligning with global energy digitalisation.
• Brand and Market Position: Stem now commands strong industry recognition as a leader in AI-driven clean energy optimization—an area projected to grow exponentially.

While not yet profitable on a GAAP basis, improved margins and earnings beats are closing the gap. For high-growth, disruptive players in energy tech, these inflection points often presage an eventual surge in valuation.

Volume and Liquidity

Market confidence in Stem is well illustrated by its substantial trading volume profile:

• Average daily volume: 4.13 million shares ensures high liquidity, providing investors with ease of entry and exit without destabilising price.
• Public float: A sizeable 154.46 million shares underpins dynamic price discovery, while the 23.7% of float sold short could act as a catalyst for short covering rallies should business momentum persist.
• Market cap of $77.4 million places Stem at a valuation point where even moderate incremental buying can drive outsized price moves—a frequent characteristic of inflection-stage tech equities.

High liquidity and trading activity reflect broad-based market participation and often precede heightened volatility in response to positive news—a dynamic traders and long-term investors can both exploit.

Catalysts and Positive Outlook

Stem stands poised before a convergence of bullish catalysts, each enhancing the probability of a positive price re-rating:

• Product and Platform Evolution: Ongoing enhancements to the Athena® platform, leveraging cutting-edge AI to deliver grid optimization and real-time energy management.
• Market Expansion: Consistent penetration into fast-growing utility and industrial markets, especially as decarbonisation targets are legislated globally.
• Software as a Service (SaaS) Transformation: Shifting to a SaaS model introduces recurring revenues, greater scalability, and premium gross margins.
• Positive Operating Cash Flow: Transitioning from cash burn to positive cash flow is a critical inflection for institutional investors.
• Leadership Renewal: The search for a permanent CEO, guided by a board with deep clean energy and tech pedigrees, could pave the way for fresh capital inflows.
• Sector-wide Structural Trends:
• Global push towards net-zero emissions.
• Rising regulatory support for behind-the-meter energy storage solutions.
• Increasing reliance on AI in grid optimisation, fortifying long-term demand for software like Athena®.
• Potential M&A Activity: Given the company’s unique IP and market positioning, Stem could emerge as a compelling acquisition target for larger infra-tech consolidators.

These multi-faceted growth drivers create a fertile backdrop for a forward-thinking investment thesis.

Investment Strategies

Stem’s current scenario offers an attractive multi-horizon entry profile, aligning with a range of tactical and strategic investor mandates:

• Short-term:
• Sweeping support at $0.40 enables tightly managed risk for traders.
• Presence above the 50-day MA, with bullish technical signals emerging, supports tactical entries ahead of upcoming catalysts or leadership news.
• The significant short interest presents a technical set-up for a short-squeeze scenario on any unexpectedly positive business update.
• Medium-term:
• The 27% YoY revenue growth, margin expansion, and transition to positive cash flow provide the fundamental base and narrative for sustained re-rating by mid-2025.
• Analysts’ consensus and fresh target upgrades to $0.60 (~30% upside from current levels) underpin this strategic window.
• Long-term:
• Core exposure to AI, clean energy, and software—three megatrends likely to define the next decade.
• Ongoing digital infrastructure modernisation and the global energy transition should amplify operating leverage and valuation multiples once profitability milestones are firmly established.
• Successful installation of a new CEO with a strong growth pedigree could catalyse a rerate toward sector multiples, leading to potential compound returns for patient investors.

Overall, the risk/reward profile is asymmetric, particularly for investors seeking to build positions at or near a technical low while major catalysts still lay ahead.

Is It the Right Time to Buy Stem?

In summary, Stem’s current inflection point marries improving fundamentals, favourable technical structure, and a robust macroeconomic tailwind. The company’s transition to a high-margin software model, record financial performance in Q1 2025, and the tailwinds from both AI adoption and renewables demand leverage a platform with clear structural growth potential. Converging technical and volume signals point toward a base-building phase—with support around $0.40 and visible catalysts on the immediate horizon.

While risks remain—notably the leadership transition and high historical volatility—the magnitude of recent operational improvements and compelling upside versus current valuation present an excellent opportunity for those seeking to participate in the next phase of the clean energy software revolution. For NZ-based investors prioritising innovation, future-proof sectors, and early-cycle entry, Stem stock clearly warrants renewed attention.

The coming quarters appear primed for Stem to transition from tactical recovery to sustained growth, rewarding those with the vision and patience to seize a leading position in the AI-driven energy transition theme.

How to buy Stem stock in New Zealand?

Buying Stem Inc. (STEM) stock online is straightforward and secure through regulated brokers that cater to retail investors in New Zealand. Investors typically have two main ways to gain exposure to STEM: by purchasing the shares outright (“spot buying”), or by trading contracts for difference (CFDs), which let you speculate on price movements without owning the asset. Both approaches are accessible with a few clicks, offering safe, transparent access to US markets. The best option for you will depend on your objectives and risk appetite. For help choosing, you’ll find an up-to-date broker comparison further down this page.

Spot Buying

A cash (or spot) purchase means you’re buying actual STEM shares on the NYSE, registered in your name or on your behalf. Most NZ-friendly brokers charge a flat commission per US share trade—commonly around NZ$5–NZ$15 per order.

Example

The current Stem Inc. share price is US$0.46 (about NZ$0.75). With NZ$1,000, you could buy approximately 1,325 shares (NZ$990 out of NZ$1,000, after a typical NZ$10 brokerage fee).
✔️ Gain scenario:
If STEM’s share price increases by 10%, your shares are now worth NZ$1,089.
Result: +NZ$99 gross gain, or +10% return on your investment (excluding currency fluctuations and taxes).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Stem Inc.'s price movement without owning the underlying shares. CFDs offer the ability to go long or short and use leverage, but come with additional risks.
Fees include the spread (the broker’s price markup) and overnight financing costs if you hold positions after market close.

Example

You open an NZ$1,000 CFD position in STEM with 5x leverage, giving you exposure to NZ$5,000 of stock.
✔️ Gain scenario:
If STEM’s price rises 8%, your position gains 8% × 5 = 40%.
Result: +NZ$400 gain on your NZ$1,000 margin (excluding spread and overnight fees).
Note: Leveraged trading magnifies both profits and losses.

Final Advice

Before investing, it’s essential to compare brokers’ fees, trading platforms, and order handling—these factors can meaningfully impact your net returns. While some investors prefer direct share ownership for long-term growth, others use CFDs for short-term opportunities. The right approach depends on your goals, timeframe and comfort with market risks. For a tailored overview of NZ-friendly brokers and current offers, see our full comparison below.

Our 7 tips for buying STEM stock

The latest news about Stem

Stem Inc. delivered a strong Q1 2025, with revenue up 27% year-on-year and positive gross margins. The company reported $32.5 million in revenue for the quarter, exceeding consensus forecasts and marking an improvement in both top-line growth and operational profitability. Notably, gross profit flipped to a positive $10.5 million from a substantial loss a year prior, and gross margin hit a record 32%. Software revenue, a strategic focus, grew by 17% over the prior year, underlining the success of Stem’s ongoing shift toward higher-margin, recurring revenue streams relevant to global energy transition priorities—including in markets where New Zealand investors have substantial interest in cleantech solutions.

Susquehanna and other analysts recently raised their 12-month price targets for STEM, with a visible upside from current levels. The average analyst price target now stands at $0.49, ranging as high as $0.60—offering up to 30% upside from current trading prices. The modest increase in analyst optimism is supported by Stem’s ongoing strategic reorientation toward AI-driven clean energy software, a segment with robust international demand and clear potential relevance to New Zealand’s ambitions for renewables and grid optimization. Institutional activity also remains high, with mixed sentiment overall due to significant short interest, but recent earnings beats have contributed to increased medium-term analyst confidence.

Stem’s Athena® AI platform is accelerating software revenue and positions the company for the global clean energy transition. The Athena® suite for energy asset optimization has demonstrated tangible results, with expanding deployments and revenue growth. As New Zealand decarbonizes its electricity grid and invests in smart energy management, Athena®’s growth trajectory and technological edge provide a useful analog and potential competitive benchmark for local players. Stem’s pivot away from hardware toward platform-based and value-added services mirrors global best practice and aligns with the broader sector trend that is of keen interest to New Zealand market-watchers.

Recent technical analysis shows mixed-but-improving signals: key momentum indicators are flashing buy, with range-bound volatility. Although the overall technical consensus remains neutral-to-sell, several short-term indicators such as MACD, Williams %R, and CCI have shifted to a buy signal in the past week, while the price remains between important support at $0.40 and resistance at $0.50. The 14-day RSI is neutral at 45.5. For New Zealand investors and analysts monitoring overseas cleantech stocks, this setup suggests an actionable period for diligent entry or portfolio review, particularly as Stem is approaching significant technical pivot points that could catalyze price movement.

There is no evidence of direct Stem Inc. activities in New Zealand, but its sector’s momentum and technology are highly relevant for local clean energy initiatives and listed companies. While the company’s primary operations and customer base are in North America, Stem’s strategic case, solution suite, and market performance are increasingly scrutinized by New Zealand fund managers, policy specialists, and institutional investors looking for benchmarks, partnerships, or signals for allocation into global energy transition themes. The positive Q1 results and sector-specific tailwinds resonate with New Zealand’s decarbonization goals, innovation targets, and the evolution of the local distributed energy storage market, making developments from Stem Inc. particularly noteworthy for the local investment and policy context.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.