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SolarEdge stock price plummets due to poor performance and weak sales outlook
25 minutes ago
SolarEdge Technologies (SEDG) stock prices rose Wednesday as the company reported quarterly profit that fell short of Wall Street expectations and forecast weaker-than-expected sales for the current quarter amid continued weakness in the solar power retail market led by the company. Following the announcement, the stock fell 13% to trade at $73. Excess inventory.
The maker of solar inverters, power optimizers and monitoring platforms posted fourth-quarter adjusted earnings of 92 cents per share on revenue of $316 million. Wall Street had expected earnings of $1.17 per share on sales of $354 million.
Furthermore, sales decreased by more than 60% year-on-year, highlighting the severity of the long-term recession in the solar power industry. SolarEdge expects sales for the March quarter to be between $175 million and $215 million, well below analysts’ expectations of $406 million.
The company said that a decline in demand in the second half of last year due to rising interest rates resulted in an inventory balance that would not be cleared until the end of 2024.
Source: TradingView.com.
SolarEdge stock has remained mostly flat since falling below $90 in mid-October, with volume levels in recent months slightly higher than most of last year. If the sell-off continues after Wednesday, we will have to watch to see if buyers can defend the swing lower support area around $64 from November and February. If this level successfully holds, a triple bottom pattern will form and could be the start of a new uptrend.
-Timothy Smith
Cybersecurity stocks fall as Palo Alto lowers sales forecast
1 hour 9 minutes ago
Cybersecurity stocks took a hit Wednesday as Palo Alto Networks (PANW) lowered its full-year revenue outlook, raising concerns about industry-wide headwinds.
Palo Alto Networks now expects fiscal 2024 revenue to be in the range of $7.95 billion to $8.0 billion, a downward revision from its previous forecast of $8.15 billion to $8.2 billion. There is. Total charges, including deferred revenue, are expected to be between $10.1 billion and $10.2 billion. As of November, the company had forecast a range of $10.7 billion to $10.8 billion.
CEO Nikesh Arora said on a conference call with analysts that despite the rise in online threats, customers are showing signs of “spending fatigue.” “Customers are realizing that adding incremental products does not necessarily improve security outcomes,” he said. He added that the company is prioritizing “platformization” to drive deals and reposition itself for long-term growth.
Palo Alto’s prediction surprised investors, sending cybersecurity stocks plummeting on Wednesday. Palo Alto Networks stock fell more than 25%, the biggest drop since the company’s 2012 IPO. Peers ZScaler (ZS) and CrowdStrike Holdings (CRWD) fell 15% and 10%, respectively.
Cybersecurity stocks were soaring before Wednesday’s decline. Palo Alto stock more than doubled in value in the year leading up to Tuesday’s earnings release, while CrowdStrike stock nearly tripled and ZScaler rose more than 90%.
Analysts were less pessimistic than the market. “Cyber fatigue claims are logical, but they haven’t appeared elsewhere.” Jefferies analysts lowered their price targets but reiterated their buy rating on the stock, saying, “We still “I’m a big fan of LT’s article, but I think stocks will be under pressure for the time being.”
Mizuho Securities echoed this opinion, stating, “While we are fully aware that the short-term story will be further disrupted, we remain bullish on improving PANW’s mix shift towards high growth in recurring revenue.” Ta.
Amazon replaces Walgreens in Dow Jones Industrial Average
2 hours 10 minutes ago
Amazon.com (AMZN) was in early trading Wednesday following news that the online retail giant plans to join the Dow Jones Industrial Average on behalf of pharmacy chain Walgreens Boots Alliance (WBA). It rose by 0.7%.
The changes will go into effect next Monday, according to S&P Dow Jones Indices, which manages a well-known 30-stock benchmark and announced the move on Tuesday.
S&P said this change was driven by factors such as: Walmart’s 3-for-1 stock splitIt also takes effect next week and reflects the “evolving nature of the American economy.”
Blue-chip indexes are widely supported by individual investors, but are dominated by traditional industrial companies. The addition of Amazon increases the benchmark index’s exposure to the technology industry.
Amazon’s stock price is up more than 11% this year. Walgreens shares were down more than 3% in early trading Wednesday and are down 16% so far this year.
-Fatima Atalwala
Stocks that move the most before the market
3 hours 22 minutes ago
Profit:
- Garmin Ltd. (GRMN): Shares of the navigation technology company rose more than 4% after fourth-quarter earnings beat analysts’ expectations on top and bottom lines.
- PDD Holdings (PDD): The Chinese e-commerce company’s stock price is bloomberg In its latest effort to prop up a sluggish stock market, the Chinese government will introduce rules that will prohibit major institutional investors from being net sellers in the first and last 30 minutes of each trading day.
- Amazon.com (AMZN): Shares soar after S&P Dow Jones Indices announced that starting Monday, the company will replace Walgreens Boots Alliance (WBA) in the Dow Jones Industrial Average. rose about 1%. Walgreens stock fell 3%.
loss:
- Palo Alto Networks (PANW): Shares of the cybersecurity company plunged more than 20% after the company lowered its full-year revenue outlook after disappointing booking estimates for the current quarter.
- Vertiv Holdings LLC (VRT): Shares soar after the company, which sells power and cooling equipment to data centers, forecast current-quarter earnings of 32 cents to 36 cents a share, missing Wall Street expectations. It fell by about 14%.
- HSBC Holdings (HSBC): The British bank’s share price fell more than 7% after it announced a $3 billion writedown on its stake in China Bank of Communications.
Stock futures fall ahead of Fed minutes, NVIDIA earnings results
4 hours 3 minutes ago
In premarket trading Wednesday, futures contracts tied to the Dow Jones Industrial Average traded 0.2% lower.
S&P 500 futures fell 0.3%.
Nasdaq 100 futures fell 0.6% about an hour before the market opened.
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