By Nora Caley | Solar Industry
Bloomberg recently reported that solar company stocks are rebounding at a faster rate than technology stocks did after the dot-com bust of the early 2000s. The BI Global Large Solar Energy Index, which consists of 15 publicly traded solar companies worldwide, decreased 87% from a February 2011 peak through November 2012 and then regained 55% of its value by October of this year.
That is a faster comeback than the NASDAQ Composite, the stock index that tracks the performance of technology and other growth companies. According to Bloomberg data, the NASDAQ Composite Index reached a low in October 2002, then regained 37% of its March 2000 peak value in the next year.
Industry analysts say the comparison between solar and technology businesses is an interesting one, but can one really draw parallels between Pets.com, GovWorks and Webvan on the one hand, and SunPower Corp., JinkoSolar and Trina Solar on the other? While many of the Web-based companies famously went out of business, some experts maintain that solar is following a different fate.
If you’d like to discuss energy issues, contact Court Rich, director of Rose Law Group’s Renewable Energy Department at crich@roselawgroup.com
