Why Enphase (ENPH) Stock Is Nosediving

Published 2024-10-23, 01:35 p/m
© Reuters.  Why Enphase (ENPH) Stock Is Nosediving
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What Happened?

Shares of home energy technology company Enphase (NASDAQ:ENPH) fell 17.9% in the morning session after the company reported weak third-quarter earnings results that fell below Wall Street's estimates for revenue and EPS. Revenue in Europe decreased approximately 15% sequentially as demand in the region continued to decline. Guidance was also weak, with the revenue outlook for the next quarter falling below the consensus estimate. Overall, this quarter could have been better.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Enphase? Find out by reading the original article on StockStory, it’s free.

What The Market Is Telling Us

Enphase’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. But moves this big are rare even for Enphase and indicate this news significantly impacted the market’s perception of the business.

Enphase is down 40.5% since the beginning of the year, and at $78.08 per share, it is trading 43.1% below its 52-week high of $137.34 from December 2023. Investors who bought $1,000 worth of Enphase’s shares 5 years ago would now be looking at an investment worth $3,337.

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