Why Solar Stocks Fell Sharply on Monday - Investopedia
Why Solar Stocks Fell Sharply on Monday
Key Takeaways
- Stocks fell broadly across the solar-energy sector Monday, weighed down by a warning from SolarEdge.
- FirstSolar was among the biggest decliners. Its shares had been lifted recently by optimism about the energy-generation needs of artificial intelligence.
- Investors will get a look at FirstSolar's next quarterly results on July 30.
Downbeat news from SolarEdge ( SEDG) weighed on solar-energy shares Monday, with stocks falling across the sector.
FirstSolar ( FSLR) stock, which had jumped in May amid enthusiasm for the sector’s prospects to provide the energy needed to power developments in artificial intelligence, fell 8.5% and was among the S&P 500’s biggest losers on the day. Its latest quarterly financial results are expected July 30.
Enphase Energy ( ENPH) dropped more than 5%, while SunRun ( RUN) tumbled 9%. The Invesco Solar Exchange-Traded Fund ( TAN) fell nearly 6%.
SolarEdge, which warned of excess inventory and cut its staff, fell 15%. Its CEO said in a regulator filing cited a “current downturn in the solar industry,” highlighting particular weakness in Europe but more encouraging signs in North America.
The pullback in solar shares came as the S&P 500’s energy sector rose, lifted by shares of oil companies such as Chevron ( CVX) and ExxonMobil ( XOM).
Related Knowledge Center: ENERGY BASICS: solar
Declining costs and government encouragement have resulted in a rapid increase in solar energy production in the United States over the past 10 years, although solar’s share remains small: 1.6 percent of all electricity generation in 2018. That rapid growth is projected to continue.