Israeli Stocks Show Volatility on Wall Street with Kaltura Surging and SolarEdge Plunging

The second quarter earnings season of 2026 highlighted sharp volatility among Israeli stocks traded in New York. SolarEdge and Taboola both suffered significant declines following disappointing forecasts and cash flow erosion, while Kaltura surprised investors with a meteoric rise driven by improved profitability and AI product integration.

SolarEdge's shares dropped about 25% after releasing its Q2 results. Although the company reported revenue growth to $346 million from $289 million year-over-year and reduced its net loss to $16 million, it issued a weaker-than-expected revenue forecast of $310-340 million for Q3, below analysts' consensus of $371 million. This forecast disappointment erased a recent 20% rally, leaving the stock down 36% over the past month. SolarEdge remains highly volatile with a history of dramatic price swings.

Taboola's stock also fell roughly 25% during trading after missing revenue estimates, reporting $476.8 million for Q2 versus the expected $499.5 million. The company forecasted Q3 revenues between $460 million and $473 million, well below the market's $518 million projection. Despite turning a net profit of $4.3 million compared to a loss last year and a 12% gross profit increase, investors punished Taboola due to a sharp decline in free cash flow to $17.3 million from $34.2 million.

In contrast, Kaltura's shares surged over 40% in one day as investors focused on its 5% revenue growth to $46.9 million, an 8% increase in subscription revenue, and a record 74% profit margin per transaction. The company also significantly reduced its losses and reported strong new AI-related contract signings, including smart avatar products, which excited the market despite concerns about future growth rates.

These contrasting performances underscore the unpredictable nature of Israeli tech stocks on Wall Street amid evolving market expectations and technological innovation.