Edison International stock plummets as wildfires leave 70,000 Southern Californians without power
Published On Jan 8, 2025, 4:44 PM
Edison International's stock dropped nearly 13% as the company shut off power to over 69,000 customers in Southern California due to wildfires fueled by high winds and drought conditions. A significant wildfire risk led to precautionary power outages, which affected around 400,000 Californians. This incident follows previous similar outages during the fire seasons. The company is facing backlash for its role in the situation, and further outages are anticipated. The wildfires have also resulted in tragic loss of life and extensive property damage, with initial estimates suggesting insured losses could reach $10 billion. Other utility companies like PG&E also saw stock declines due to similar concerns.
Stock Forecasts
EIX
Negative
Edison International's share price is likely to continue declining as investor sentiment diminishes in light of the current wildfires and power outages. The ongoing risk of more outages and potential liabilities could further pressure the stock.
PCG
Negative
Given the current conditions and the broader implications for the utility sector, investors may also want to keep an eye on Pacific Gas and Electric (PCG) for potential volatility as it has historically been affected under similar circumstances.
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