From great heights, falls come easy.
Despite announcing vastly improved second-quarter numbers, shares in high-flying First Solar (nasdaq: FSLR - news - people ) dropped 4.3%, or $4.88, to $107.69 on Wednesday.
As fundamentals go, the Phoenix, Ariz.-based solar energy company published "a pretty strong report," American Technology Research analyst John Hardy said. However, for a stock in the hot alternative energy sector that had risen more than 370% in the past six months, fundamentals may have little to do with how it trades.
Hardy suggested the stock may have been set up for a drop due to rumors of strong results that intensified as the date of the company's report approached....
...Deutsche Bank analyst Steve O'Rourke maintained his "hold" rating and said in a report that investors should expect a drop in the company's share price. However, he said, "we are strong believers in the company's technology, market position, and solid operational performance and outlook."
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