What Happened?
Shares of electricity storage and software provider Fluence (NASDAQ:FLNC) fell 17% in the morning session after the company reported weak third-quarter financial results. Its revenue missed significantly. On the other hand, Fluence Energy blew past analysts' EBITDA and EPS estimates. Overall, this was a mixed yet weaker quarter.
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 Fluence Energy? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Fluence Energy’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. But moves this big are rare even for Fluence Energy and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 19% on the news that the company reported strong second-quarter earnings results, with revenue and EPS exceeding Wall Street's estimates. However, the quarter was negatively impacted by the timing of product deliveries. As a result, sales guidance was narrowed for the full year as some of its signed contracts were pushed out to fiscal 2025. But the market seems to be looking past this, and the stock is up after the results.
Fluence Energy is down 17.7% since the beginning of the year, and at $19.65 per share, it is trading 27.8% below its 52-week high of $27.22 from December 2023. Investors who bought $1,000 worth of Fluence Energy’s shares at the IPO in October 2021 would now be looking at an investment worth $561.14.
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