Why Fluence Energy, Inc. (FLNC) Crashed Last Week

We recently compiled a list of the These 10 Firms Were Last Week’s Worst Performers. In this article, we are going to take a look at where Fluence Energy, Inc. (NASDAQ:FLNC) stands against the other stocks.

Wall Street’s main indices finished firmer on Friday, with all main indices settling in the green territory ahead of President-elect Donald Trump’s return to the White House.

Week-on-week, the Dow eked out a 3.81-percent gain, the S&P rallied 3.79 percent, while the Nasdaq increased by 3.84 percent.

Ten companies from diverse sectors, however, ended Friday weaker, posting notable declines versus the week prior. In this article, let’s look at which firms suffered a bloodbath and the reasons that dragged their performance.

For this week’s list, we only focused on companies with a market capitalization of at least $2 billion and a minimum trading volume of $5 million.

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Fluence Energy, Inc. (NASDAQ:FLNC)

Fluence Energy, Inc. (NASDAQ:FLNC) dropped its share prices by 10.25 percent week-on-week to finish Friday’s trading at $14.44 apiece amid investor concerns about the Securities and Exchange Commission’s (SEC) ongoing 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) artificially inflated 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 Adjusted Gross Margins, which we think helps to explain why Fluence is on its third CFO in just over two years.”

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

Overall FLNC ranks 10th on our list of last week’s worst performers. 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 timeframe. If you are looking for an AI stock that is more promising than 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.