Solaredge Technologies, Inc. (NASDAQ:Sedation) Falled 24.67% on May 22, 2025. Let's shed some light on the development.
Technician installs a communication device in a large solar energy system.
Solarairge Technologies, Inc. (NASDAQ: SEDG) Design, develop, manufacture, and sell direct current optimized inverter systems for solar photovoltaic installations in the United States, Germany, Netherlands, Italy, the rest of Europe, and internationally.
Solaredge Technologies, Inc. suffered (NASDAQ: SEDG) A major blow after the representatives' house narrowly passed President Trump's' Big Bill 'which terminates key clean energy credits that have supported the country's renewable energy industry. The legislation, which is now moving to Parliament, takes a 'hammer' to the Biden Period Inflation Reduction Act, abolishing grants with a view to reducing air pollution, greenhouse gas emissions or buying electric heavy heavy vehicles.
The solar energy industry, which relies heavily on the said credits, has been particularly hard struck. The sweeping tax and expenditure bill makes it impossible for solar energy players to claim or transfer tax credits, when completely terminated for installers who lease equipment to customers. In addition, tax credit for homeowners who own their own panels will also be eliminated. As a result, Solaredge Technologies, Inc. (NASDAQ: SEDG) Due to shaking investor confidence, as the sale of its inverter would hit from the lower demand for a solar roof.
It must be mentioned that Solaredge Technologies, Inc. (NASDAQ: SEDG) posted a modified loss per share of $ 1.14 for its first quarter of 2025, still beating forecasts of $ 0.02. The company's revenue also grew 7.4% YOY to nearly $ 219.5 million, adding to the expectations of $ 15.25 million.
While we recognize the potential of SEDG to grow, our conviction lies in the belief that AI stocks are more promised for achieving higher earnings, and to do so within a shorter timetable. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock that is more promising than SEDG but trading at less than 5 times its earnings, check out our report for this Cheapest AI Stock.
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