The stock market climbed on Monday driven by rate cut hopes after a softer-than-expected jobs report last week.
Overall, S&P 500 grew 1.0% to 5,181, while NASDAQ rose 1.2% to 16,349.
Tweet of the Day
For those who do not understand what just happened:
First, Q1 2024 GDP growth slowed to just 1.6% which is less than HALF of the 3.4% Q4 2023 number.
This reading is roughly 50% BELOW Goldman Sach's expectations.
But it gets even worse.
At the same time, the US Core PCE Price… pic.twitter.com/5Rct3i9TGh
— The Kobeissi Letter (@KobeissiLetter) April 25, 2024
Chart of the Day
Here is the ten-year chart of First Solar (FSLR) as of April 2, 2024, when the stock was at $167.
First Solar could be a market leader again if macro economy gets better. Despite the industry’s macroeconomic challenges (e.g. global oversupply and pricing volatility), First Solar still had steady and strong demand last quarter. Things are looking up for the future, as annual profits are expected to increase, from $8 in 2023 to $13 in 2024, $21 in 2025, and $30 in 2026.
The company’s factory expansions and upgrades remain on schedule, increasing global nameplate capacity from 16.6 gigawatts in 2023 to 25 gigawatts by in 2026. In the earnings call, management stated that there is a global oversupply and price volatility, but the company still sees strong mid-to-long term demand, especially in the US. In India, a reduction in cell pricing has hurt local production as Chinese imports are making it hard for local suppliers.
First Solar is set to benefit from billions in incentives from the Inflation Reduction Act, and profits could jump higher in the upcoming years. First Solar is on the radar for the Growth Portfolio.
