Fluence Energy stock declines amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy FLNC?
Fluence Energy Inc. saw a significant decline of 10.70% as it crossed below its 5-day SMA, reflecting broader market trends.
The stock's drop comes amid a general downturn in the Nasdaq-100, which is down 1.06%, and the S&P 500, down 0.17%. This indicates a sector rotation affecting Fluence Energy, as the stock moves contrary to the overall market performance.
Investors should consider the implications of this movement, particularly in light of the high volatility associated with FLNC, which may present both risks and opportunities in the current market environment.
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Analyst Views on FLNC
Wall Street analysts forecast FLNC stock price to rise
18 Analyst Rating
3 Buy
12 Hold
3 Sell
Hold
Current: 15.700
Low
8.00
Averages
16.25
High
26.00
Current: 15.700
Low
8.00
Averages
16.25
High
26.00
About FLNC
Fluence Energy, Inc. is a global provider of energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, the Company provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and artificial intelligence (AI)-enabled optimization software for managing and optimizing renewables and storage from any provider. Its offerings include energy storage products and solutions, delivery services, recurring O&M services, and digital applications and solutions for energy storage and other power assets. Its energy storage solutions include Gridstack Pro, Gridstack, Sunstack, Edgestack, and Ultrastack. In addition, each of its energy storage solutions comes with its proprietary energy management system, Fluence OS. The Company’s cloud-based software products include Fluence Mosaic and Fluence Nispera.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, they highlight the company's significant position in the rapidly growing AI data center market.
- Credo Technological Innovation: Credo Technology's high-performance networking tools achieve data flows of up to 0.8 Tbps through its Active Electrical Cables, significantly reducing power consumption and cooling requirements, catering to the urgent demand for efficiency in data centers.
- Significant Revenue Growth: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, demonstrating strong performance in the data center market and reliance on large clients' investments.
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- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, the expected increase in order volume reflects the company's strategic positioning in a rapidly growing market.
- Efficient Networking Solutions: Credo Technology's high-speed copper cables can transmit data at 0.8 Tbps while consuming significantly less power than fiber-optic networks, addressing the urgent need for high performance and lower costs in data centers, further solidifying its market position.
- Revenue Growth Potential: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, highlighting its importance in data center infrastructure investments and future growth potential.
See More
Jefferies Upgrades Fluence to Buy with $24 Target
- Rating Upgrade: Jefferies upgraded Fluence Energy from Hold to Buy with a $24 price target, citing strong prospective EBITDA growth through FY 2028 that justifies the premium valuation despite current market conditions.
- Market Reaction: Following a more than 30% selloff due to softer-than-expected data center pipeline data, the analyst views this reaction as disproportionate, noting that FQ1 results, while not exceptional, included positive developments like full revenue coverage in the backlog for the first time.
- Demand Surge: With macro headwinds easing and surging demand from grid reliability and data centers, Fluence's U.S.-first strategy positions it as one of the few players capable of delivering compliant solutions at scale, suggesting a partial recovery in share price over the next 6-9 months.
- Growth Catalyst: Data centers represent a powerful growth catalyst for Fluence's Smartstack systems, although the full potential of this opportunity may take time to materialize, the analyst believes it will lead to significant long-term benefits for the company.
See More
Key Wall Street Rating Changes on Monday
- Morgan Stanley Bullish on Nvidia: Morgan Stanley names Nvidia a top pick, viewing the current stock price at 18x CY27 EPS as an attractive entry point, expecting market concerns about growth durability to shift to enthusiasm in the coming months.
- Barclays Downgrades Blue Owl: Barclays downgrades Blue Owl from overweight to equal weight, citing overly high market estimates and suggesting that the stock is now closer to fairly priced based on earnings growth potential.
- Piper Sandler Upgrades CrowdStrike: Piper Sandler upgrades CrowdStrike from neutral to overweight, maintaining a $520 price target, arguing that the market's bearish sentiment driven by AI narratives is overdone for a leading security platform with a strong track record.
- Goldman Sachs Upgrades Dutch Bros: Goldman Sachs upgrades Dutch Bros from neutral to buy, asserting that the market is underestimating the coffee chain's fundamental strength and competitive positioning amid a challenging coffee landscape.
See More
Trump Pushes Energy Commitment from Data Centers
- Political Commitment: In his State of the Union address, Trump mentioned securing a pledge from major tech companies to supply power for data centers, although details remain unclear, this could impact future electricity supply and cost structures.
- Growing Power Demand: NextEra Energy plans to build 15 gigawatts of new power capacity to meet data center demands, indicating a shift towards gas generation while emphasizing renewable energy, reflecting changing policy directions.
- Market Dynamics: With accelerated data center construction, the U.S. is expected to face a net negative power supply by 2029, tightening the electricity market and boosting market share for independent power producers.
- Investment Opportunities: Wells Fargo has named Constellation Energy as its top pick among independent power producers, projecting a 40% stock price increase, while other independent producers like NRG and Talen are also viewed positively, indicating optimistic sentiment towards data center-related investments.
See More
Market Overview: Stock Return Potential Analysis
- Stock Return Potential: Fluence Energy (NASDAQ:FLNC) is bullish above $15.00-$15.50, with an upside target of $34.00-$35.00, indicating a potential return of 90%, reflecting strong market confidence in its future growth.
- Industry Performance Analysis: Ultra Clean Holdings (NASDAQ:UCTT) is bullish above $45.00-$46.00, targeting $80.00-$82.00, suggesting a 36% return potential, highlighting robust demand in the semiconductor sector.
- Market Trend Observation: Darling Ingredients (NYSE:DAR) is bullish above $43.00-$44.00, with a target of $75.00-$80.00, indicating a 50% return potential, showcasing its ongoing growth in the food and biofuel markets.
- Market Volatility Warning: Despite short-term downward pressures, the long-term trend remains bullish, and investors should be cautious of seasonal volatility in the second half of February to seize potential buying opportunities.
See More
Data Centers Drive Growth for Fluence and Credo
- Fluence Growth Potential: Fluence Energy's battery modules provide stable power for data centers, with projected sales growth of 57% over the next two years despite flat revenues, indicating strong market demand and potential order opportunities.
- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, they highlight the company's significant position in the rapidly growing AI data center market.
- Credo Technological Innovation: Credo Technology's high-performance networking tools achieve data flows of up to 0.8 Tbps through its Active Electrical Cables, significantly reducing power consumption and cooling requirements, catering to the urgent demand for efficiency in data centers.
- Significant Revenue Growth: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, demonstrating strong performance in the data center market and reliance on large clients' investments.
See More
Fluence and Credo Technologies Empower Data Centers
- Battery System Advantage: Fluence Energy's industrial-scale battery modules provide clean, stable power for AI data centers, particularly well-suited for integration with renewable energy sources, with projected sales growth of 57% over the next two years, indicating strong market demand.
- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, the expected increase in order volume reflects the company's strategic positioning in a rapidly growing market.
- Efficient Networking Solutions: Credo Technology's high-speed copper cables can transmit data at 0.8 Tbps while consuming significantly less power than fiber-optic networks, addressing the urgent need for high performance and lower costs in data centers, further solidifying its market position.
- Revenue Growth Potential: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, highlighting its importance in data center infrastructure investments and future growth potential.
See More
Jefferies Upgrades Fluence to Buy with $24 Target
- Rating Upgrade: Jefferies upgraded Fluence Energy from Hold to Buy with a $24 price target, citing strong prospective EBITDA growth through FY 2028 that justifies the premium valuation despite current market conditions.
- Market Reaction: Following a more than 30% selloff due to softer-than-expected data center pipeline data, the analyst views this reaction as disproportionate, noting that FQ1 results, while not exceptional, included positive developments like full revenue coverage in the backlog for the first time.
- Demand Surge: With macro headwinds easing and surging demand from grid reliability and data centers, Fluence's U.S.-first strategy positions it as one of the few players capable of delivering compliant solutions at scale, suggesting a partial recovery in share price over the next 6-9 months.
- Growth Catalyst: Data centers represent a powerful growth catalyst for Fluence's Smartstack systems, although the full potential of this opportunity may take time to materialize, the analyst believes it will lead to significant long-term benefits for the company.
See More
