In May 12 trading, shares of utility firm NextEra Energy Inc. (NYSE: NEE), a green energy supply-focused corporation, were down roughly 26% year to date to $68.51. Short-term events influence NEE values, yet NextEra has long-term potential.
Many investors sold shares in renewable energy businesses at the start of the year because of predicted rate rises and growing inflation, which drove up the cost of installing green facilities.
NextEra Energy Inc. (NEE) announced the postponement of several projects in April, causing its stock to plummet. Furthermore, NextEra Energy CEO John Ketchum came out against the US government’s inquiry into solar panel imports from Southeast Asia at the end of last month. He is concerned that the probe could result in the imposition of “reverse” tariffs on foreign-made panels, meaning that businesses would be required to pay for panels previously acquired as a consequence of altered import rules.
This will not only result in increased costs and a price increase for solar projects in the United States. Furthermore, because their duties on Chinese panels are already known, this circumstance may have the reverse effect: enterprises will choose to acquire Chinese panels directly. The inquiry element is expected to remain for the next two years, adding to the market’s already high level of uncertainty.
All of this puts downward pressure on NEE stock prices, although the corporation does have one benefit: diversity. Wind energy (about 23 percent in 2021), natural gas (47 percent), and nuclear energy all play a key role in NextEra Energy’s portfolio (23 percent).
At the end of last year, solar energy accounted for 4.4 percent of NextEra Energy’s own generation, thus the influence of this segment on the company’s prospects is now overblown.
At the same time, long-term trends remain consistent, assisting NextEra Energy Inc. (NEE)’s growth. First and foremost, businesses want to transition to a zero-emissions manufacturing cycle.
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