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Stocks fell broadly in the solar sector on Monday, pressured by a warning from SolarEdge.
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FirstSolar was among the biggest decliners. Shares have recently risen on optimism about the power generation needs of artificial intelligence.
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Investors will watch FirstSolar’s next quarterly results on July 30.
Gloomy news from SolarEdge (SEDG) weighed on solar stocks on Monday, with shares across the sector falling.
FirstSolar (FSLR) stock, which had jumped in May amid enthusiasm for the sector’s prospects to provide the energy needed to drive global development artificial intelligencefell 8.5% and was among the S&P 500’s biggest losers today. The latest quarterly financial results are expected on July 30.
Enphase energy (ENPH) fell more than 5%, while SunRun (RUN) fell by 9%. The Invesco Solar Exchange-Traded Fund (BANNING) fell by almost 6%.
SolarEdge, that one warned of excess stock and cutting staff, fell by 15%. The CEO said in a filing with the regulator that there was a “current downturn in the solar industry,” highlighting particular weakness in Europe but more encouraging signs in North America.
The decline in solar stocks came as the energy sector of the S&P 500 rose, lifted by shares of oil companies like Chevron (CVX) and ExxonMobil (XOM).
Read the original article Investopedia.