Why Enphase Energy Stock Tanked Wednesday

Solar power and energy storage system provider Enphase Energy (NASDAQ: ENPH) reported its first-quarter 2021 earnings on Tuesday, and demand continues to outpace supply for the company's products. But shares were down sharply today as investors focused on the stock's high valuation and the supply constraints affecting the business. As of 10:45 a.m. EDT, Enphase shares are down over 14%.

Today's price drop should be put in context, however, as the stock has gained about 470% since the start of 2020. For the first quarter of 2021, Enphase continued to report strong business results. Revenue of $301.8 million was 47% higher than the year-ago period, and gross profit margin was a solid 40.7%. But the outlook for next quarter and the balance of the year was tempered by supply constraints from semiconductor component suppliers.

Source Fool.com