Shares of Enphase Energy (NASDAQ:ENPH) fell as much as 16.8% in trading Wednesday after a short-seller’s report was released. As of 11:45 a.m. EDT, the stock was down 12.8%.
A report from Prescience Point Capital Management accused Enphase Energy of a host of things, including revenue growth being a “sham” and producing “fabricated” revenue. These are explosive allegations and, for today, investors are taking them seriously.
It’s not unusual for short-sellers to go after companies they think are overvalued, but the allegations here go much deeper than that. No doubt management will need to respond to assure investors that it’s still a solid solar energy stock.
I am not going to jump on a short-seller’s