What Happened?
Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) fell 6.3% in the morning session after the stock pulled back due to valuation concerns as it hit a 52-week high.
The decline followed a recent surge where the stock reached a new 52-week high of $281.87. Analysis indicated that the company traded at a high price-to-earnings (P/E) ratio relative to its near-term earnings growth. This suggested the shares may have become overvalued at those higher levels, which likely prompted some investors to sell and take profits.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy First Solar? Access our full analysis report here.
What Is The Market Telling Us
First Solar’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock gained 6% on the news that Alphabet announced it would acquire Intersect Power, a major customer that purchases First Solar's solar panels.
Alphabet entered into an agreement to purchase the data center and energy infrastructure company for $4.75 billion in cash, plus the assumption of debt. Intersect Power was a major buyer of First Solar's thin-film solar panels, with significant multi-gigawatt orders placed in previous years. The deal likely boosted investor confidence as it secured a key customer relationship. This news also followed other positive developments, including the recent inauguration of a $1.1 billion manufacturing facility in Louisiana, which was expected to significantly boost the company's solar panel production capacity.
First Solar is up 42.4% since the beginning of the year, and at $265.55 per share, it is trading close to its 52-week high of $284.59 from December 2025. Investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $2,608.
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