Shares of hydrogen fuel cell maker Plug Power (PLUG -3.93%) had been on a tear in January after several strategic business announcements and subsequent capital raises. But since the company raised its guidance and announced another stock offering on Jan. 26, the stock has dropped more than 25%.
Continuing that trend Thursday, shares were down 7% as of 10:45 a.m. EST.
Yesterday, Plug Power announced its intention for another new partnership to supply green hydrogen solutions in Europe. Last month, the company announced plans for a 50-50 joint venture with French automaker Renault (RNSDF -6.09%) to integrate hydrogen fuel cells into the European market for light commercial vehicles. The latest announcement said Plug Power and Acciona, a supplier of renewable energy infrastructure solutions, plan to launch a 50-50 joint venture to serve clients in Spain and Portugal.
Yesterday's announcement of a new potential joint venture is seemingly good news for Plug Power. Besides the Renault partnership, the company has also recently announced a deal with SK Group that will give the South Korean industrial company a 10% stake in Plug Power with a $1.5 billion investment.
These strategic announcements have driven the stock price up to where Plug Power has increased the number of shares outstanding by more than 30% since last fall as it raised new capital. As long as management is putting that capital to good use in growing the business, that's a good thing for long-term shareholders.
But after the stock had more than doubled in January, investors have taken more of a wait-and-see approach to let the business catch up to the almost $30 billion valuation.