Enphase (ENPH)
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once a shining star with impressive growth over the past decade, now finds itself among the year's worst-performing stocks.
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The answer lies predominantly in the company's key market, California.
It has recently made significant legislative changes, specifically to the Net Energy Metering (NEM) policy. The revised policy reduces incentives for homeowners with solar panels, dropping the rate paid for surplus electricity fed back into the grid by 70-80%.
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Despite the company management has attempted to downplay the impact of this policy change, the effects are quite apparent. Previously, Enphase was considered a high-growth stock, boasting an annual growth rate of 30-40%. Today, however, the company is facing contraction. The current price appears to have factored in this diminished growth trajectory.
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Firstmover
