We have recently released a list of 10 Troubled Stocks on Friday. This article will explore how Enphase Energy, Inc. (NASDAQ:ENPH) compares to other struggling stocks from Friday.
The stock market wrapped up the trading week positively, with all major indices appreciating by over 1 percent after a brief dip into negative territory during intra-day trading due to a confrontation between US President Donald Trump and Ukrainian President Volodymyr Zelensky at the White House.
After the televised meeting, the two leaders ended their discussion without reaching an agreement for collaborative mineral resource development.
The Dow Jones increased by 1.39 percent, the S&P 500 climbed by 1.59 percent, and the Nasdaq jumped by 1.63 percent.
Ten companies defied the overall market optimism, with three of these stocks suffering substantial losses due to disappointing earnings, each dropping by more than 20 percent in value.
In this analysis, we have outlined the factors contributing to their subpar performance.
To identify Friday’s biggest losers, we focused exclusively on stocks with a market capitalization of $2 billion and a daily trading volume of at least $5 million.
A solar panel installation spreads across a vast open area, with its gleaming panels sparkling in the sunlight.
Enphase Energy, Inc. (NASDAQ:ENPH) prolonged its downward trend for a fourth consecutive day on Friday, reaching a new all-time low of $56.83 during intra-day trading before gaining some traction to close the day down 6.31 percent at $57.33.
Analysts suggest that this price point indicates considerable volatility for the firm, showing a beta of 1.68, which implies a higher sensitivity to market changes compared to the average.
Over the past year, the company has clearly followed a downward path, with a year-to-date price decline of 16.53 percent.
In the fourth quarter, Enphase Energy, Inc. (NASDAQ:ENPH) reported that its net income tripled to $62.16 million, up from $20.20 million in the same quarter last year, while revenues jumped 26 percent to $382.7 million, compared to $302.57 million previously.
Conversely, the full-year net income plummeted by 76.6 percent to $102.6 million from $438.9 million in 2023, while annual revenues decreased by 42 percent to $1.33 billion from $2.29 billion year-on-year.
Ultimately, ENPH ranks 6th on our list of underperforming stocks for Friday. While we recognize ENPH’s potential as an investment, we believe that other AI stocks present more significant opportunities for better returns in a shorter period. For those interested in an AI stock that is more promising yet trades at less than 5 times its earnings, be sure to check out our report on the most affordable AI stock.
