What Happened?
Shares of electricity storage and software provider Fluence (NASDAQ: FLNC) fell 3.2% in the morning session after analysts at Mizuho downgraded the stock. The investment bank lowered its rating on the energy storage provider to "Neutral" from "Outperform."
The downgrade comes in response to President Trump's "One Big Beautiful Bill," which alters the landscape for federal energy subsidies. Mizuho analysts noted that the new policy could limit short-term demand for utility-scale solar developers. Despite the downgrade, Mizuho significantly raised its price target on Fluence to $10.00 from $6.00, citing the company's strong domestic production and supply of non-China battery cells. However, the bank believes this advantage is now reflected in the stock's price and anticipates increased domestic competition within the next one to two years.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Fluence Energy? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Fluence Energy’s shares are extremely volatile and have had 63 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 6.4% after it was selected by AMPYR Australia to construct a major battery energy storage project. The energy storage technology company announced it will build the 300 MW / 600 MWh Wellington Stage 1 Battery Energy Storage System (BESS) in New South Wales, Australia. The deal also includes a 20-year service and maintenance contract.
This project marks AMPYR's first grid-scale battery system in Australia and is a significant step in the country's transition to renewable energy. The system, scheduled to be operational in 2026, will use Fluence's full suite of technology, including its Gridstack™ storage product and AI-powered Mosaic bidding software to optimize performance and profitability. For Fluence, this partnership reinforces its leadership in the growing Australian energy storage market and is expected to contribute to a strong increase in order volume for the second half of fiscal year 2025.
Fluence Energy is down 53.6% since the beginning of the year, and at $7.85 per share, it is trading 66.6% below its 52-week high of $23.50 from November 2024. Investors who bought $1,000 worth of Fluence Energy’s shares at the IPO in October 2021 would now be looking at an investment worth $224.14.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
