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Why Plug Power Stock Dropped Today

By Howard Smith - Feb 23, 2021 at 3:56PM

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The hydrogen fueling solutions company is part of a market rotation after sharp recent gains.

What happened

Since the start of 2021, Plug Power (PLUG -0.72%) stock has risen 36%. But it has been in correction mode for the last month, down more than 30% from its highs. Shares continue the downward trend today, trading 5% below Monday's close as of 3:15 p.m. EST.

So what 

Though there has been much news put out by the company since January, a new member joining its board of directors is the only new information today. Kimberly Harriman, a vice president of energy provider Avangrid (AGR 1.17%), has joined the board of the hydrogen fuel cell company. 

An addition to the company with experience in this sector should be good news for Plug shareholders, if anything. Avangrid states it works "to deliver a more accessible clean energy model." That certainly fits with Plug Power's growing hydrogen fuel solutions plans. 

Grid showing the globe with green, hydrogen, and renewable power icons superimposed

Image source: Getty Images.

Now what

Plug Power has announced several new business partnerships already in 2021, and it provided a business update in which it raised its gross billings' targets for 2021 and 2024. While the addition to the company's board appears to be more positive news, the stock of the still-unprofitable company has run with investors' anticipation of renewable energy growth. 

A correction from that run, along with a market rotation in general, is recalibrating Plug Power's valuation. It is still a $25 billion company, but it does have future promise for its hydrogen fuel cell solutions if its strategic business plans are well executed.

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Stocks Mentioned

Plug Power Inc. Stock Quote
Plug Power Inc.
PLUG
$16.45 (-0.72%) $0.12
Avangrid, Inc. Stock Quote
Avangrid, Inc.
AGR
$47.62 (1.17%) $0.55

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