SolarEdge Technologies (SEDG) witnessed a significant drop of 5.55% in its stock price on Thursday, following the release of its Q4 2024 earnings report. The company's financial performance and outlook have been impacted by several factors, leading to concerns among investors and analysts.
One of the primary reasons behind the stock plummet was the disappointing financial results reported by SolarEdge for the fourth quarter. The company posted a GAAP net loss of $287.4 million and a non-GAAP net loss of $202.5 million. Additionally, the company faced a $115 million inventory write-down due to weaker-than-expected recovery in the European market.
Furthermore, the company is navigating through uncertainties in the US market due to potential policy changes, which could impact sales and market conditions. Analysts have also raised concerns about the challenges faced in the European market, where macroeconomic headwinds persist, and SolarEdge expects a slight market decline in 2025.