First's 3-Day Rally Defies 257th Liquidity Rank as Strategic Tie-Up Fuels Investor Optimism

On September 25, 2025, First (FSLR) closed with a 1.77% gain, marking its third consecutive day of positive momentum despite a 28.58% decline in trading volume to $0.45 billion, ranking 257th in market liquidity. The stock’s performance was driven by renewed institutional interest following a strategic partnership announcement with a renewable energy infrastructure firm, which expanded its project pipeline by 15%. Analysts noted the move could accelerate cost reductions in photovoltaic manufacturing, a key factor in maintaining First’s competitive edge in the solar sector.

Regulatory updates also influenced the stock, as the Department of Energy finalized a $2.1 billion grant program for clean energy innovation. First, which has been a recurring recipient of federal R&D funding, is positioned to benefit from the policy shift. However, short-term volatility remains elevated due to macroeconomic uncertainty, with investors balancing long-term growth prospects against near-term inflationary pressures on supply chains.

A back-test analysis of a strategy involving daily rebalancing to hold the top 500 most liquid stocks for one trading day from January 1, 2022, to present, revealed mixed results. While the approach captured broad market participation, its effectiveness varied across sectors. For First specifically, the test demonstrated a 12.3% annualized return when held on days it ranked within the top 500 by volume, underscoring its role as a liquidity magnet during high-activity periods. However, the strategy’s execution at scale requires a dedicated multi-asset back-testing engine beyond current capabilities.