Why Did Fluence Energy (FLNC) Go Down on Friday?

We recently published a list of These 10 Firms Took A Hit on Friday. In this article, we are going to take a look at where Fluence Energy, Inc. (NASDAQ:FLNC) stands against other firms that took a hit on Friday.

Wall Street’s main indices all finished in the green territory on Friday, as investors repositioned their portfolios ahead of president-elect Donald Trump’s return to office.

The Dow jumped by 0.78 percent, while the S&P surged by 1 percent. Meanwhile, Nasdaq soared 1.51 percent.

However, ten companies under mixed sectors bucked an overall positive market sentiment as multiple negative factors put pressure on investor sentiment. In this article, let’s look at the reasons that dragged their shares performance.

To come up with the top 10 losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Fluence Energy, Inc. (NASDAQ:FLNC)

Fluence Energy, Inc. (NASDAQ:FLNC) saw its share prices on Friday decline by 7.32 percent to close at $14.44 each as investor sentiment remains weighed down by concerns over the Securities and Exchange Commission’s investigation against the company over improper accounting practices.

The investigation stemmed from Blue Orca Capital’s claims in February 2024 alleging that Fluence Energy (NASDAQ:FLNC) was artificially inflating revenues and profits through aggressive accounting tactics, including revenue recognition schemes and selective earnings adjustments.

In its report, Blue Orca said: “In our opinion, Fluence Energy’s (NASDAQ:FLNC) purported improvement over recent quarters is the product of accounting games that have materially inflated revenue growth and Adj. Gross Margins, which we think helps to explain why Fluence is on its third CFO in just over two years.”

Law firm Hagens Berman is currently probing into Fluence Energy’s (NASDAQ:FLNC) potential violations of the US securities laws and has urged investors who have suffered substantial losses to come forward.

Overall, FLNC ranks 3rd on our list of firms that took a hit on Friday. While we acknowledge the potential of FLNC 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 as promising as FLNC 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.