Big Moves: May 22, 2025
What moved today and why? Snowflake, SolarEdge, Enphase Energy, NextEra Energy, Medtronic and more
Turn In The Barrel
Investors in renewable energy stocks could be excused for thinking they’ve had more than their fair share, but there they were Thursday, reacting to news out of D.C. that the spending bill, which proposes eliminating several tax benefits for clean energy companies, had passed.
More favorably, Snowflake surged on better-than-expected earnings. It’s become cliché to say there’s no AI without data, but Snowflake shows that being a key part of the modern data infrastructure has its benefits. As companies ramp up investment in AI-driven tools and analytics, Snowflake’s role as a central hub for managing and activating data keeps expanding. Read more below.
For new readers, one of the main motivations behind starting Big Price Moves Explained was to have a reason to actively engage with AI on a daily basis—learning by doing. I maintain active editorial oversight over topic selection, model, and platform choices, but pretty much everything below this point is written by AI.
A quick preview of Thursday’s notable moves:
Contradiction: Shares of Medtronic slid despite solid quarterly performance and a strategic business spin-off, as investors reacted more strongly to a modest downward revision in analyst expectations.
Legislative Pressure: Renewable energy stocks plunged across the board, with companies like SolarEdge* and Enphase suffering double-digit losses as investors priced in the potential rollback of clean energy tax credits under new legislation.
Momentum: Software standout Snowflake* surged on strong earnings and bullish analyst revisions, capitalizing on rising investor confidence in its AI-related growth story—even as broader market sentiment remained mixed.
Collateral Damage: Conventional utility NextEra wasn't spared in the renewable energy selloff, losing ground despite its diversified energy mix, suggesting broad investor unease over the sector's policy outlook.
* These companies have the pros and cons discussed on their earnings calls or in other materials summarized in the Read section below.
Skim
This is where you come to quickly see if anything interesting is happening with names you care about. Think of it as informative advertising.
Solaredge Technologies Inc (SEDG) - Renewable Energy (-24.67%) SolarEdge Technologies Inc (SEDG) stock fell by 24.67% due to the approval of a major rollback of climate incentives in the U.S. House, which is part of President Donald Trump’s budget and tax package. This legislative development negatively impacted the solar sector, causing significant declines in solar stocks, including SolarEdge. Sources: MT Newswires, BNN Bloomberg, Benzinga
Enphase Energy Inc (ENPH) - Renewable Energy (-19.63%) Enphase Energy Inc (ENPH) shares fell by 19.63% due to the passage of a GOP tax and spending bill in the U.S. House of Representatives, which proposed the elimination of several tax benefits for clean energy companies. This legislative change targeted key elements of the Inflation Reduction Act, aiming to significantly reduce or eliminate tax credits for wind, solar, and electric vehicles, thereby impacting financial incentives that have previously supported growth in the renewable energy sector. Sources: Yahoo! Finance, BNN Bloomberg, MT Newswires, Benzinga
Snowflake Inc (SNOW) - Software (+13.43%) Snowflake Inc (SNOW) is up 13.43% due to better-than-expected Q1 financial results and multiple firms raising their price targets on the stock. Specifically, Wedbush increased its price target to $230, Truist Securities to $235, Oppenheimer to $225, DA Davidson to $250, and RBC Capital to $236, all reflecting increased confidence in Snowflake’s growth trajectory and its potential as a key player in the AI Revolution. Additionally, Snowflake raised its product revenue guidance, signaling steady demand. Sources: MT Newswires, Benzinga
NextEra Energy Inc (NEE) - Conventional Electricity (-6.43%) NextEra Energy Inc (NEE) shares fell by 6.43% on Thursday, primarily due to the introduction of a more restrictive bill that affects the phaseout of renewable energy incentives, which negatively impacted utility solar and renewable companies like NextEra. Sources: AOL.com, Nasdaq, Benzinga
Medtronic Plc (MDT) - Medical Equipment (-4.15%) Medtronic Plc (MDT) is down by 4.15% on May 22, 2025, primarily due to RBC Capital Markets lowering its fiscal 2026 EPS forecast and reducing its price target on the stock from $105 to $101, despite the company’s solid Q4 performance and strategic move to separate its Diabetes business into a standalone entity. Sources: MT Newswires, Associated Press, Benzinga, Yahoo! Finance
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Read
In this section we offer a bit more detail in a couple of featured names.
Snowflake Inc (SNOW) - Software (203.18 | +13.43%)
Snowflake Stock Surges on Strong Earnings
Snowflake Inc. (SNOW) shares surged 13.43% following impressive first-quarter fiscal 2026 results that exceeded expectations. Product revenue reached $996.8 million, marking a 26% year-over-year growth. Several investment firms, including Wedbush, Truist Securities, and DA Davidson, raised their price targets, reflecting increased confidence in the company’s AI-driven growth trajectory.
Financial Performance Highlights
The cloud data platform company reported total revenue of $1.04 billion for Q1 2026, surpassing analyst expectations. Adjusted earnings per share came in at $0.24, ahead of the expected $0.21. Operational efficiency improved with the adjusted operating margin expanding to 9% from 4% year-over-year. The company maintained a strong net revenue retention rate of 124%.
Customer metrics showed solid expansion with 11,578 total customers (18.9% year-over-year growth), including 606 generating over $1 million in trailing 12-month product revenue. Adjusted free cash flow was $206.3 million (20% margin), down from 44% the previous year due to seasonal factors. Remaining performance obligations reached $6.7 billion, growing 34% year-over-year.
Analyst Price Target Increases
Following the strong performance, multiple firms raised their price targets. Wedbush raised its target to $230, DA Davidson to $250, Truist to $235, Oppenheimer to $225, RBC Capital to $236, and Stifel to $220. Among the 32 analysts covering the stock, 28 issued Buy ratings, with only four Hold recommendations, highlighting strong consensus on Snowflake’s AI potential and market execution.
AI Innovation Strategy
More than 5,200 accounts now use Snowflake's AI services weekly, showcasing growing adoption of its Cortex AI platform. Over 125 new product features were introduced in the quarter, with tools like Snowpark and Dynamic Tables gaining traction. Strategic partnerships with OpenAI and Anthropic have enabled customers to build advanced AI models for large-scale data management. Analysts now view generative AI as a long-term tailwind for Snowflake, marking a shift from previous growth concerns.
Management Outlook
CEO Sridhar Ramaswamy reaffirmed the company’s mission to empower enterprises through data and AI. CFO Mike Scarpelli raised Q2 product revenue guidance to $1.035–$1.040 billion (25% growth) and increased full-year product revenue outlook to $4.325 billion. The company secured two deals over $100 million in Q1 and expects to maintain 8% operating margins for fiscal 2026, supported by a strong $4.5 billion cash position.
Guided by Big Price Moves Explained; Sourced and written with Perplexity.ai in Deep Research mode [link with citations]
Solaredge Technologies Inc (SEDG) - Renewable Energy (14.95 | -24.67%)
SolarEdge Stock Plunges on Climate Rollback
SolarEdge Technologies Inc (SEDG) stock plummeted 24.67% following the U.S. House of Representatives' approval of President Trump's tax bill, which eliminates crucial solar incentives including the 30% federal tax credit for rooftop solar installations.
Legislative Impact on Solar Incentives
The House-approved tax bill represents what analysts described as taking a "sledgehammer" to clean energy incentives, with provisions far more stringent than initially anticipated. Beyond eliminating the 30% federal tax credit for homeowners installing rooftop solar systems, the legislation dramatically accelerates the timeline for phasing out broader clean energy tax credits. Solar projects must now commence construction within 60 days of the bill's enactment and complete construction by December 31, 2028, to remain eligible for tax credits — a significant acceleration from the previous gradual phase-out through 2031.
Perhaps most devastating for the industry, the bill eliminates the transferability provision introduced in the Inflation Reduction Act, which had allowed renewable energy developers to sell their tax credits to finance project construction. These changes could trigger an immediate decline in solar investments, potentially resulting in up to $220 billion in lost investment by 2030. The legislation also introduces restrictions on projects receiving "material assistance from prohibited foreign entities," creating additional complications for an industry heavily reliant on global supply chains.
Solar Sector Market Reaction
The market's reaction to the House bill was swift and brutal across the entire solar sector. While SolarEdge fell 24.67%, other companies experienced similarly devastating declines — Sunrun plummeted over 35%, Enphase Energy dropped approximately 16%, and Complete Solaria fell 22%. Even solar tracking system manufacturers felt the impact, with Array Technologies and Nextracker declining by more than 13% and 6% respectively, demonstrating the legislation's broad impact throughout the solar supply chain.
Trading volume for SolarEdge surged to extraordinary levels, with over 18.3 million shares traded compared to its average volume of approximately 4 million shares. This volume spike reflected urgent investor repositioning in response to what analysts characterized as a "worse than feared" scenario for clean energy. Interestingly, First Solar experienced a relatively modest 3–4% decline compared to peers, as the legislation preserves manufacturing tax credits, suggesting investors are beginning to price in competitive advantages for companies with domestic production capabilities.
SolarEdge's Financial Challenges
Beyond the legislative headwinds, SolarEdge faces severe company-specific operational struggles that have contributed to its poor stock performance. The company reported a devastating 70% revenue decline for 2024, accompanied by a net loss of $1.8 billion compared to a positive $34 million in the previous year, reflecting both aggressive price reductions and substantial asset impairments and write-downs totaling approximately $1.17 billion.
Analyst sentiment remains deeply divided on the company's prospects. While some have upgraded the stock, arguing that debt concerns may be overblown, others have downgraded it, citing tight liquidity, weak earnings prospects, and declining European market conditions. Despite forming partnerships and launching new products, these initiatives have proven insufficient to halt the ongoing decline in business fundamentals amid intense competition from lower-cost rivals.
Senate Deliberations and Outlook
The legislation now moves to the Senate, where the solar industry hopes for significant modifications to the House-approved provisions. Analysts anticipate that Senate deliberations will focus primarily on the Foreign Entity of Concern provisions and the timeline for phasing out clean electricity incentives. These areas represent potential compromise points where senators from states with significant clean energy investments might seek modifications to protect local economic interests, particularly since 73% of clean energy manufacturing sites are located in Republican-led states.
For companies like SolarEdge, this creates a challenging operating environment of policy flux while forcing an industry-wide rush to begin construction under the accelerated timeline requirements. Texas alone faces the prospect of losing more than 170,000 jobs due to the proposed tax credit restrictions. Despite these concerns, the Republican-controlled Senate's alignment with Trump's agenda suggests limited prospects for wholesale changes to the legislation that has already devastated solar stock valuations.
Guided by Big Price Moves Explained; Sourced and written with Perplexity.ai in Deep Research mode [link with citations]
Disclaimer: The information contained in this newsletter is intended for educational purposes only and should not be construed as financial advice. Please consult with a qualified financial advisor before making any investment decisions. Additionally, please note that we at e/r/c advisors may or may not have a position in any of the companies mentioned herein. This is not a recommendation to buy or sell any security. The information contained herein is presented in good faith on a best efforts basis; note that most of the writing is undertaken by AI—rely on it at your own risk.