First Solar Stock Slides 0.51% as $300M Daily Volume Tanks 27% to 326th Liquidity Rank Amid Analyst Dilemma

On August 8, 2025, First Solar (FSLR) closed with a 0.51% decline, trading at $184.79. The stock saw a daily trading volume of $0.30 billion, a 27.28% drop from the previous day, ranking 326th in market liquidity.

Analysts highlight mixed signals for FSLR. While the stock has outperformed the S&P 500 by 8.2% over six months, driven by strong quarterly results, long-term fundamentals remain a concern. The company’s five-year revenue growth of 6.8% compounded annually lags behind industrial peers. Free cash flow margins have deteriorated by 18.9 percentage points over five years, reaching a negative 21.7% for the trailing 12 months. Additionally, First Solar burned through $942.7 million in cash over the past year, leaving only 15 months of runway based on current cash reserves, raising risks of dilution if further capital is needed.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18%. This underscores the potential of liquidity concentration in volatile markets, where high-volume stocks may offer short-term momentum opportunities, though the approach is less suited for long-term investment.