What's Going On With Enphase Energy Stock?

Enphase Energy Inc ENPH shares are trading lower by 4.9% to $76.82 Monday morning. The stock is falling after amid ongoing, recent weakness in solar- and solar-related stocks.

Enphase Energy shares also fell last week in sympathy with Solaredge Technologies Inc SEDG , which reported weak third-quarter financial results.

What Happened With SEDG Earnings?

SolarEdge's third-quarter revenue of $725.3 million marked a 27% year-over-year decrease and fell short of the estimated $768.38 million. The company also reported a quarterly loss of 55 cents per share, significantly lower than the 91 cents per share earnings from the previous year.

Additionally, the company's adjusted gross margin decreased to 20.8% from 27.3% year-over-year...Read More

See Also: What's Going On With Paramount Global Stock?

Why This Matters To ENPH Investors

The performance of key players in a particular industry can influence investor sentiment and perceptions of the industry's overall health. When a prominent solar company like SolarEdge reports disappointing earnings, it may create doubts about the sector's growth prospects, leading investors to reevaluate their positions in other solar-related stocks, including Enphase Energy.

SolarEdge's specific financial metrics, such as its substantial revenue decline and loss in earnings, suggest challenges in the solar industry. The adjusted gross margin decline from 27.3% to 20.8% year-over-year indicates increased cost pressures or pricing competition, which can affect profitability for companies across the sector, including Enphase Energy.

According to data from Benzinga Pro, ENPH has a 52-week high of $339.92 and a 52-week low of $74.70.