Why Solar Energy Stocks Jumped Double Digits Today

Shares of residential solar stocks jumped early on Monday morning after SolarEdge Technologies (NASDAQ: SEDG) announced a major layoff. The industry has been under pressure for months, and this is finally a breaking point for one of the highfliers of the last few years.

Shares of SolarEdge jumped as much as 11.3% in trading Monday, while Enphase Energy (NASDAQ: ENPH) was up 11.1%, Sunnova Energy (NYSE: NOVA) jumped 13%, and (NASDAQ: RUN) was up 11.2%. At 12:30 p.m. ET, the stocks had given back most of their gains and were up 3.3%, 3.5%, 5.2%, and 4.4% respectively.

SolarEdge announced a 16% reduction in the global workforce, which amounts to 900 employees. The shocking number was a reduction of the manufacturing workforce by 500 employees.

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Source Fool.com