Why Shares of Enphase Energy Plummeted 34% in March
Reversing course from their 55% climb through February, shares of Enphase Energy (NASDAQ: ENPH) sank 34% in March, according to data from S&P Global Market Intelligence. While the overall sense of foreboding that contributed to the S&P 500's 12.5% decline moved some shareholders to exit their positions, others who are acutely aware of Enphase's operations worried about the impact COVID-19 is having on China and California, in particular.
One source of concern for investors last month stemmed from the company's vulnerability to the spread of COVID-19 through China. In his March letter to shareholders, Enphase's CEO, Badri Kothandaraman, stated that the company's "primary microinverter factory in Fuyong, China, is now at 80% of our line capacity, in line with the typical staffing as workers return from the Chinese New Year shutdown." But as investors -- and Americans in general -- learned in March, things change quickly when it comes to the disease.
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Source Fool.com
