
NASDAQ:FSLR
This summary was created by AI, based on 3 opinions in the last 12 months.
First Solar Inc. (FSLR) is facing significant challenges as outlined by recent expert reviews. Concerns about impending tariff changes and potential tariff retaliation from China have dampened investor sentiment. The stock's performance has declined by 10% since December, with anticipations of only single-digit revenue growth in the upcoming quarter. Additionally, the threat of supply disruptions in 2026 looms large. Further complicating the outlook, there is a Senate proposal aimed at terminating tax incentives for the solar sector, which has negatively impacted share prices. An expert who once viewed the company as a solid investment due to its domestic supply status has since sold shares, citing an unexpected oversupply in China and waning governmental support for solar energy as pivotal factors in his decision.
Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. One of his three favourite solar stocks is First Solar. FS makes its own panels and proprietary technology. They're sold out for 2021 and nearly for 2022. They have an excellent balance and trades at 21x earnings. You can buy a partial position write now or buy on dips.
Biggest name in North American market. Got nailed twice. First, during the crash. Then, because China went big into the solar panel market, at subsidized prices. There will be growth in sales, but price of solar panels will drop dramatically. If you’re willing to ride it out for the long term, this can do very well. But you’ll have to be patient. Potential for dramatic technological change in this area. Be a little bit cautious about the technology risk.
Solar sector has been in the doldrums. It is very subsidized, in particular by a lot of the European countries, and when they got into financial difficulties, a lot of the subsidies were pulled. This company has a big project coming on and have a strategy to increase their cost base. Probably not a good time to get in as it probably had a short squeeze that made the stock jump so dramatically.