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? Access our full analysis report here, 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.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.