When does the amazing become routine?
For the second day in a row, shares of FuelCell Energy (NASDAQ:FCEL) are racing higher today, tacking on another 11.6% gain (as of 11:11 a.m. EST) atop yesterday's 18.3% surge. Once again, there seems to be no news behind the stock price movement.
And it's not just FuelCell Energy. Yesterday also saw the shares of fellow fuel cell stock Ballard Power (NASDAQ:BLDP) rocket 10%, and Bloom Energy (NYSE:BE) closed the day up 9.4%. Those two are also up again today -- 12.2% and 11.1%, respectively.
So what exactly is going on here?
I suppose there's an argument to be made that when oil prices rise, the prices of stocks tied to alternative energy solutions should rise as well. After all, more expensive oil makes alternatives to generating power from oil more attractive.
And yes, oil is a bit more expensive now than it was earlier this month. On Feb. 4, the price of WTI crude oil dipped briefly below $50. It's north of $53 right now, a gain of 7.3% in just two weeks. That could explain a bit of optimism among investors in fuel cell stocks.
Then again, does a 7.3% gain in oil prices justify a 64% gain in the price of FuelCell Energy stock in those same two weeks? Or the 40% gain in Bloom Energy stock? Or even the 31% gain for Ballard Power?
I honestly don't think it does -- especially not when you consider that, if you draw back the camera just a bit, oil prices that are up 7% in a couple weeks are also down 16% over the past month and a half. Over on Twitter, CNBC's admittedly never-even-keeled Jim Cramer is having fits of apoplexy, exclaiming:
what the hell is happening? Where are the sellers??— Jim Cramer (@jimcramer) February 19, 2020
I'd kind of like to know the answer to that one myself.