Shares of SolarEdge Technologies Inc. (SEDG) experienced a significant downturn in premarket trading on Friday, with a staggering drop of 28.3%. This decline marks the largest one-day selloff since the company went public in March 2015, surpassing the previous record of a 22.9% drop observed on November 3, 2020.
Bleak Earnings Outlook Impacts Stock
The sudden plummet in SolarEdge’s stock price can be attributed to the company’s revised earnings outlook. In response, Colin Rusch from Oppenheimer downgraded the stock from outperform to perform. This shift comes after 16 months of it maintaining an outperform rating. According to Rusch, the challenges highlighted by the company are far more profound than initially anticipated.
Set to Open at Record Low Price
Alongside the stock’s steep decline, it is expected to open at the lowest price observed during regular trading hours since April 6, 2020. This significant dip in value before the market opens would result in a loss of approximately $1.82 billion in market capitalization for SolarEdge Technologies Inc.
Over the past three months leading up to Thursday, SolarEdge’s stock had already experienced a substantial decrease of 56.7%. This downward trend is mirrored by the Invesco Solar ETF (TAN), which tumbled by 34.6%, and the S&P 500 (SPX), which saw a 5.7% decline.
Despite these challenges, SolarEdge Technologies Inc. continues to navigate this unpredictable period in the solar power industry.