Why Are These Four Stocks Among Wednesday’s Biggest Losers?

Enphase Energy Inc (NASDAQ:ENPH), with a market capitalization of $165.75 million, has sank by 37.90% to $2.31 per share this morning amid a “more challenging than expected” fourth quarter in 2015, its President and CEO Paul Nahi confessed. The power company reported third quarter 2015 net income of $624 million, or $0.01 per share, which was lower than the $813 million, or $0.02 per share in earnings from the third quarter of 2014. Meanwhile, non-GAAP operating income for the third quarter of 2015 was $4.9 million, compared to $4.8 million in the prior-year period.

Enphase Energy Inc (NASDAQ:ENPH) reported total revenue for the third quarter of 2015 of $102.9 million, an increase of 4% compared to the $99.1 million it pulled in during the third quarter of 2014. However, it expects a fourth quarter revenue decline, driven by a correction of higher inventory levels in its distribution channel and softer overall market demand, according to Enphase Energy Inc (NASDAQ:ENPH) CFO Kris Sennesael.

Nahi added that amid a challenging quarter, “[We] are confident in our ability to drive our product costs down significantly over the next 24 months, improving our competitive position. In addition, we expect to drive new revenue streams from our AC Battery storage system, as well as the Enphase Home Energy Solution.”

Enphase lost a lot of popularity in the second quarter among the investors we follow, with ownership among them falling to 14 from 24, and the value of their collective stakes being nearly halved, to $70.49 million.

In the real estate arena, Zillow Group Inc (NASDAQ:Z & ZG) released its third quarter 2015 financial statement, posting an EBITDA which was beyond expectations as the company concluded a transition period as it combines its Zillow and Trulia ad platforms.

Zillow Group Inc (NASDAQ:Z AND ZG) shares lagged by 7.80% to $27.22 per share in morning trade on the results.

“We finished this integration four months ahead of schedule, and are ending 2015 in tremendous shape. Zillow Group will enter 2016 with the potential for robust sustainable growth in the years ahead,” Zillow Group CEO Spencer Rascoff said.

On a pro forma basis, Zillow Group Inc (NASDAQ:Z AND ZG)’s total revenue jumped to $176.8 million in the third quarter of 2015, from the $155.8 million which was reported in the third quarter of 2014. Significantly increased pro forma adjusted EBITDA was recognized in the most recent quarter that ended, at $29.5 million, compared to the $19.5 million reported in the prior-year period.

Zillow also lost a good deal of support during the second quarter, as hedge funds appear to have anticipated the travails of many of these companies. The number of investors long Zillow among the 730 that we track fell to 23 from 36, and the value of their holdings fell substantially, to $652 million. Billionaire John Paulson was among the investors to sell out of the stock in the second quarter, selling all 200,000 shares he had held on March 31.

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