Edison International (EIX): Here’s Why the Stock Crashed on Wednesday

We recently published a list of 10 Tech, Energy Stocks Are Wednesday’s Worst Performers. In this article, we are going to take a look at where Edison International (NYSE:EIX) stands against other tech, energy stocks are Wednesday’s worst performers.

Ten technology and energy companies suffered a bloodbath on Wednesday, primarily due to profit-taking following the previous day’s gains and bearish comments surrounding the progress of quantum computing development.

In this article, we will look at the performance of some of the worst-performing companies and explore the factors behind their decline.

We considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume to come up with Wednesday’s top losers.

An aerial view of a bustling international airport terminal.

Edison International (NYSE:EIX)

Shares of Edison International (NYSE:EIX) dived by 10.18 percent on Wednesday to finish at $69.50 apiece, its largest decline since September 2022, after news that its subsidiary Southern California Edison, implemented a power shutdown affecting 114,000 customers due to ongoing wildfires in the region.

Multiple large fires are burning around Los Angeles aggravated by strong winds. According to a report by Associated Press, tens of thousands of people have been ordered to evacuate and at least two people have died.

While the company did not provide any timeline as to when electricity service will be restored, it said that the shutdown was part of its precautionary measures to prevent further wildfire-related damages.

Overall, EIX ranks 8th on our list of tech, energy stocks are Wednesday’s worst performers. While we acknowledge the potential of EIX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EIX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.