SolarEdge surges despite posting steep fourth-quarter loss

Core Insights - SolarEdge shares increased by over 28% despite reporting a significant fourth-quarter loss of $287 million, which was better than expected by analysts [1] - The company generated positive free cash flow while reducing inventory and trade receivables, indicating operational efficiency [1] - Adjusted loss per share was $3.52, worse than the anticipated loss of $1.65, but revenue of $196.2 million surpassed expectations of $189.1 million, despite a 17% decline year-over-year [2] Industry Context - The residential solar sector, including SolarEdge, has faced challenges due to high interest rates and an oversupply of products [3] - Concerns regarding political support for renewable energy, particularly with President Trump's focus on oil and gas, have added to investor anxiety [3] - Over the past year, SolarEdge's stock has decreased by more than 75%, reflecting broader market challenges [3]