Why SolarEdge Stock Dropped, Then Popped Today, and Why Sunnova and Daqo New Energy Are Moving, Too
SolarEdge (NASDAQ: SEDG) stock is taking investors on a wild ride on Thursday -- but not just investors in SolarEdge stock. After reporting a gigantic earnings miss last night, shares of the Israeli solar inverter stock opened down 13% from Wednesday's closing price. The shares proceeded to fall further in the day's opening minutes, before turning around, gaining back (almost) all their losses -- then retreating again.
As of 11:15 a.m. ET, SolarEdge stock is down again, but only by 3.3%. At the same time, other companies in the solar industry are making big moves of their own. China's Daqo New Energy (NYSE: DQ) for example, is up 6.8% after suffering a big drop yesterday. And Sunnova Energy International (NYSE: NOVA), which operates residential solar energy systems and provides solar energy to consumers, is also bouncing back from a big loss yesterday, and now up 8.5%.
SolarEdge's early move lower is the easiest of these to explain. Last night, SolarEdge reported a stunning 64% decline in Q3 sales, compared to a year ago, even as its cost of goods sold soared 65%. Even with SolarEdge scrambling to cut its spending on sales, marketing, research, and development, these two numbers moving in opposite (and wrong) directions ended up costing SolarEdge $1.2 billion on the bottom line -- nearly 20 times its losses a year ago, and far more than analysts had forecast.
Source Fool.com
