Question

what are the risks of nextera energy (NEE) dont copy!!

Answer 1

Risks of NextEra Energy are as follows-

A. Nextera energy is a clean energy Company and it is highly dependent upon various kinds of subsidies which are reducing the overall cost of operation for the company so, it is highly dependent upon government intervention for profits.

B. This company is highly overvalued because of of unavailability of a substitute in the clean energy sector and the largest Market share company this will also be prone to losing market share once the economic cycle goes downwards and the premium valuation evaporates.

C. most of the contracts of this company are bilateral contract for longer period of time so they can be suffering from short-term financial crunch for liquidity because they are not having enough cash on its books.

D .The exposure of this company is limited to wind energy as well as solar energy so, this company is highly based upon renewable factors and these can be easily impacted, so they are exposed to climate & season based like when wind will not be blowing and sun will not be shinning, these companies are losing onto their operational bass.

So these are the risk related to Nextera company and this company is highly exposed to the renewable sector and government intervention along with natural dependence.