What Happened?
Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) jumped 6% in the afternoon session after 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.
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 34 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 biggest move we wrote about over the last year was 6 months ago when the stock dropped 20.3% on the news that a U.S. Senate panel proposed phasing out solar and wind energy tax credits by 2028, raising concerns about future profitability and project viability for solar companies. The phasing out is expected to begin as early as 2026, diminishing the financial incentives that have been critical drivers of growth in the renewable energy sector.
First Solar is up 53% since the beginning of the year, and at $285.28 per share, has set a new 52-week high. Investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $2,713.
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