Why SolarEdge (SEDG) Is Down 5.7% After Mounting Losses and AI-Flagged Trading Volatility

• Recent commentary on SolarEdge Technologies highlights that over the past two years the company has faced weaker-than-expected megawatt shipments, eroding returns on capital, and negative EBITDA, all of which have raised fresh concerns about demand for its solar efficiency systems and its ability to fund operations without burdening shareholders.
• An additional layer of complexity comes from AI-driven institutional trading strategies flagging choppy, mid-channel price patterns in the stock, underscoring how operational headwinds are now intersecting with more technical, model-based trading activity.
• We’ll now examine how these signs of soft demand and persistent losses may reshape SolarEdge’s earlier investment narrative around policy support and growth.

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SolarEdge Technologies Investment Narrative Recap

To own SolarEdge today, you need to believe that policy support, storage adoption and integrated solar-plus-storage systems can eventually offset weak megawatt shipments and ongoing losses. The latest commentary around soft demand, negative EBITDA and choppy trading mainly reinforces that the near term risk is funding operations without putting more pressure on shareholders, while the key catalyst remains any clear evidence that demand and margins are stabilizing.

Against this backdrop, SolarEdge’s Q3 2025 results, with US$340.18 million in sales and a reduced net loss of US$50.06 million versus the prior year, are particularly relevant. They illustrate that, even as shipments and returns on capital disappoint, the company is still generating meaningful revenue, which matters for assessing whether policy support, storage growth and new products can eventually translate into a more sustainable earnings profile.

Yet, while policy and product tailwinds are important, investors should be aware that the company’s negative EBITDA and access to capital could...

Read the full narrative on SolarEdge Technologies (it's free!)

SolarEdge Technologies' narrative projects $1.6 billion revenue and $11.8 million earnings by 2028. This requires 20.6% yearly revenue growth and an earnings increase of about $1.7 billion from current earnings of -$1.7 billion.

Uncover how SolarEdge Technologies' forecasts yield a $33.04 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Sixteen fair value estimates from the Simply Wall St Community span roughly US$33 to over US$90 per share, showing how far apart individual views can be. As you weigh those perspectives, keep in mind the recent concerns around weak megawatt shipments and negative EBITDA, which could influence how sustainable any recovery in SolarEdge’s performance proves to be.

Explore 16 other fair value estimates on SolarEdge Technologies - why the stock might be worth over 3x more than the current price!

Build Your Own SolarEdge Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SolarEdge Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free SolarEdge Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SolarEdge Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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