What Happened?
Shares of solar tracker company Nextracker (NASDAQ: NXT) jumped 12.9% in the morning session after the company reported impressive first quarter 2025 (fiscal fourth quarter) results which blew past analysts' revenue, EPS, and EBITDA expectations. In addition, its full-year revenue guidance outperformed Wall Street's estimates. Sales grew 26% year-over-year, driven by booming demand for its Hail Pro and XTR solar trackers.
On the other hand, its full-year EPS and EBITDA guidance fell short. Overall, this print was mixed but still had some key positives.
Is now the time to buy Nextracker? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Nextracker’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. But moves this big are rare even for Nextracker and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 23 days ago when the stock gained 5.4% as investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
Nextracker is up 56.2% since the beginning of the year, and at $61.70 per share, has set a new 52-week high. Investors who bought $1,000 worth of Nextracker’s shares at the IPO in February 2023 would now be looking at an investment worth $2,026.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
