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First Solar stock falls on Bank of America downgrade

Yahoo Finance Live's Julie Hyman reports that Bank of America has downgraded First Solar stock.

Video Transcript

JULIE HYMAN: A couple of other movers, though, that we want to flag you to, as well, this morning include First Solar. That company getting cut to an underperform rating over at Bank of America. And the stock has rallied. It's had quite a big bounce. And the analyst over at Bank of America is Julien Dumoulin Smith, saying, at the end of the day, quote, "expansion not backed by fundamentals, leaving shares susceptible to significant D ratings." So he said the stock's trading on the expectation of pricing power that, really, has historically never materialized, indeed, over the longer term.

And he doesn't say this, but as someone who's been watching this industry over the longer term, of course, we've seen solar pricing come down to some extent. So interesting move here, Soz.

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BRIAN SOZZI: Yeah. It just-- I think it highlights how far a lot of these solar stocks have just fallen in the minds of investors. It's not even a-- I would argue some of these names are no longer even top plays here. Just think about it this way. When was the last time we talked about SolarCity inside of Tesla. We're not, and I think that says a lot.

JULIE HYMAN: Yeah. Well, the thing doesn't make any money, so that's why we haven't talked about it.

BRIAN SOZZI: Let's just focus on Tesla and Twitter, Julie.

JULIE HYMAN: Yeah.

BRIAN SOZZI: Just Tesla and Twitter.

JULIE HYMAN: I guess that's the analyst's-- kind of the analyst's point here, right, is that it's not necessarily something where they're going to have pricing power, where we're going to see margin expansion.

BRIAN SOZZI: I personally couldn't care less. I don't even own a home, so I don't have any solar panels.

JULIE HYMAN: You don't have any-- if it doesn't touch you personally, who cares? Is that where we're going? You don't have the personal experience.

BRIAN SOZZI: I don't care.

JULIE HYMAN: Forget about it. And I'm just, by the way, I'm doing a quick check for myself here on the Invesco Solar ETF. TAN is the ticker, appropriately enough. Little wordplay for you there, Soz. And that ETF is down over the past year by about 10%.