SolarEdge (SEDG) Stock Trades Down, Here Is Why

What Happened?

Shares of solar power systems company SolarEdge (NASDAQ:SEDG) fell 13.1% in the morning session after peer Canadian Solar reported a significant drop in its third-quarter module shipments, raising concerns about a broader industry slowdown. 

Canadian Solar, a major player in the sector, announced that its total module shipments recognized as revenues plunged by 39% compared to the previous year. This steep decline suggested weakening demand across the solar market, which negatively impacted investor sentiment for related companies like SolarEdge. The news compounded existing worries about increased competition within the industry. Furthermore, it aligned with projections of a significant decrease in demand for residential solar systems, adding to the pressure on the company's outlook.

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What Is The Market Telling Us

SolarEdge’s shares are extremely volatile and have had 95 moves greater than 5% over the last year. But moves this big are rare even for SolarEdge and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 12.7% on the news that the stock's positive momentum continued as it reported better-than-expected third-quarter financial results, where both revenue and earnings surpassed analyst forecasts. 

The solar technology company posted revenue of $340.2 million, a strong 44.5% increase compared to the same period in the previous year and above the projected $330.29 million. While SolarEdge reported a loss of $0.31 per share, this was narrower than the $0.41 loss that analysts had anticipated. Adding to the positive news, the company also announced a new collaboration with Infineon Technologies to help power data centers.

SolarEdge is up 151% since the beginning of the year, but at $37.10 per share, it is still trading 18.3% below its 52-week high of $45.38 from November 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $167.40.

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