What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) jumped 10% in the morning session after the company reported strong fourth-quarter results that showed higher revenue and improved margins.
The solar inverter maker announced revenue of $335.36 million, a 71% increase from the same period in the previous year. The company also narrowed its loss after tax by 54% year-over-year to $132.12 million, crediting the performance to operational improvements. Furthermore, SolarEdge provided guidance for positive free cash flow in the first quarter and signaled confidence by aiming to reach profitability later in the year. Following the upbeat report, analysts responded positively, with firms like TD Cowen raising their price targets on the stock due to the margin gains and positive cash flow.
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What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 84 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 14 days ago when the stock gained 7.6% on the news that the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices.
This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
SolarEdge is up 19.2% since the beginning of the year, but at $37.38 per share, it is still trading 17.6% 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 $129.47.
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