First Solar, Inc. (FSLR), Netflix, Inc. (NFLX): What to Focus on As Risk Aversion Rises for Tech Stocks?

First Solar, Inc. (NASDAQ:FSLR) is up sharply after issuing positive guidance for the next few fiscal years. The company is also making a number of acquisitions. By acquiring TetraSun, the company gained a 60MW solar project in California. First Solar also acquired a 150MW project, also in California. First Solar, Inc. (NASDAQ:FSLR) is valued at a forward P/E of 11.6, compared to 7.43 for Xerox.

Foolish bottom line

Judging the probability for additional gains in a company cannot be done looking at P/E. Even a stock at a 52-week low could move lower, while a company at a new high could keep moving higher. Yet, as market participants reduce their exposure to risks, these quantitative measures do matter more.

Xerox and Applied Materials pay a respectable dividend, while First Solar, Inc. (NASDAQ:FSLR) and Netflix, Inc. (NASDAQ:NFLX) are both moving aggressively to grow revenue. None of the companies mentioned are immune to profit-taking as risk aversion rises, but investors must decide if they are willing to ride past the short-term volatility or to secure the capital gains now.

The article What to Focus on As Risk Aversion Rises for Tech Stocks? originally appeared on Fool.com and is written by Chris Lau.

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