First Solar Inc (NASDAQ:FSLR) shares are trading lower Thursday afternoon, caught in a downdraft affecting the entire renewable energy sector. Here’s what investors need to know.
What To Know: According to a report from CNBC, the decline was triggered by comments from President Donald Trump, who stated his administration “will not approve wind or farmer destroying Solar.”
This announcement has sparked significant concern among investors about the future of federal support and permitting for renewable energy projects in the United States.
CNBC reported that the administration had already tightened the federal permitting process for renewables, centralizing final decisions with Interior Secretary Doug Burgum.
The president’s latest comments have intensified fears that new projects will be stalled, creating major headwinds for companies like First Solar that depend on continued growth and development.
Adding to the pressure, First Solar’s stock could also be trading down in sympathy with competitor Canadian Solar Inc (NASDAQ:CSIQ).
Canadian Solar reported disappointing second-quarter earnings and significantly lowered its full-year revenue guidance, signaling a challenging second half for the industry due to difficult market conditions, rising supply chain prices, and trade uncertainties.
Price Action: According to data from Benzinga Pro, FSLR shares are trading lower by 6.35% to $193.39 Thursday afternoon. The stock has a 52-week high of $262.70 and a 52-week low of $116.56.
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How To Buy FSLR Stock
By now you're likely curious about how to participate in the market for First Solar – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of First Solar, which is trading at $192.85 as of publishing time, $100 would buy you 0.52 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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