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Why Hydrogen Fuel Cell Stocks Jumped Today

By Howard Smith - Dec 15, 2020 at 12:22PM

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After positive news from Plug Power, Bloom Energy and FuelCell Energy stocks also gained.

What happened

Shares of hydrogen fuel cell stocks are rising today. As of 11 a.m. EST, shares of Plug Power ( PLUG -1.60% ) were up 13%, while Bloom Energy ( BE -0.12% ) and FuelCell Energy ( FCEL -2.50% ) both jumped 9%. 

Shares in the renewable energy companies are getting a boost with news from Plug Power and Walmart ( WMT -0.04% )

So what

Plug Power announced this morning that it is expanding its partnership with Walmart. Plug Power has been providing Walmart with its hydrogen engines and fueling since 2010. Walmart uses about 9,500 Plug Power fuel cell vehicles for material handling at 37 of its North American distribution centers. 

dice spelling out fuel cell with emissions being replaced by cell

Image source: Getty Images.

Now the companies say that Plug Power will be expanding its hydrogen and fuel cell solutions to Walmart's e-commerce network into 2021. 

Now what

The expansion of Plug Power's relationship with Walmart is somewhat of an affirmation of the fuel cell technology, which explains the jump in price for the related company stocks. 

But while the news is certainly good for Plug Power, it doesn't necessarily mean the value of Bloom Energy and FuelCell Energy should grow today. In fact, both have recently had news drive their shares down. 

Bloom Energy was recently the target of a critical article in The Wall Street Journal. And earlier this month, FuelCell Energy raised new capital, which diluted existing shareholders. Investors sold on that news, driving shares down almost 30%. These stocks tend to move together, and each has recovered since early December. All three are up between 10% and 20% since Dec. 2 when FuelCell announced its share sale. 

Today's moves are similar in that there is really no news on FuelCell or Bloom Energy specifically. But a growing relationship with the world's largest retailer certainly does benefit Plug Power. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Plug Power Inc. Stock Quote
Plug Power Inc.
PLUG
$36.01 (-1.60%) $0.59
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$136.55 (-0.04%) $0.05
FuelCell Energy, Inc. Stock Quote
FuelCell Energy, Inc.
FCEL
$7.42 (-2.50%) $0.19
Bloom Energy Corporation Stock Quote
Bloom Energy Corporation
BE
$25.24 (-0.12%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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