What happened 

Shares of FuelCell Energy (NASDAQ:FCEL) jumped as much as 29.5% in trading Wednesday as investors continued to pile into renewable energy stocks. Shares closed the day up 24.9%. 

So what

Renewable energy stocks are hot once again today as investors buy stocks they think could benefit from the latest stimulus bill. The planned extension of an investment tax credit for renewable energy projects should benefit fuel cell developers as well, meaning they get a two-year extension of a 26% tax credit. 

Dice spelling H2 fuel.

Image source: Getty Images.

This news isn't new today, but trading can take some strange turns around the holidays while many big traders are taking time off. 

Now what

I wouldn't change anything about your investment thesis in FuelCell Energy or fuel cell stocks in general because of today's move. The tax credit extension will help make projects more economically viable, but FuelCell Energy hasn't been consistently profitable even with larger subsidies in place. The company could potentially make use of some of the R&D money in the stimulus package, but even speculating on where that money is allocated isn't a wise move right now.

I'll sit out this move and look for a significant improvement in finances in 2021 now that we know where subsidies will go. It may finally be a great year for hydrogen deployments.  

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.