Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of inverter manufacturer Enphase Energy Inc (NASDAQ:ENPH) jumped as much as 10% today after announcing a major collaboration.
So what: Friday afternoon, Enphase announced collaboration with Soligent and CertainTeed to build over 400 MW of solar projects around the country. The program will allow HVAC installers, roofers, electricians, and other contractors to white label Soligent's system as their own, and should lead to growth for Enphase.
Now what: Since going public, Enphase has struggled to make a profit, and that's where the real concern should be for investors. Partnerships like this are announced all the time in the solar industry, and it'll only be valuable if it's profitable long-term. That's where I have concerns for Enphase, and it's why I'll be staying out of the stock today.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.