Shares of clean-fuel technology companies Plug Power (NASDAQ:PLUG) and Bloom Energy (NYSE:BE) jumped on Monday as the focus of investors shifts from pandemic-related relief to a potential infrastructure-spending stimulus package.
Shares of Plug Power and Bloom Energy were up 6.9% and 6.1%, respectively, at 2:50 p.m. EST today.
If the Biden administration proposes an infrastructure bill, comments about a pivot toward clean energy that were made during the election campaign have investors in the renewable energy sector believing there will be benefits for companies like Plug Power and Bloom Energy.
Shares of both companies have corrected approximately 30% from recent highs this year, after extended bullish runs since the November 2020 election. Even with the recent downtrend, shares of Plug Power and Bloom Energy are up 203% and 108%, respectively, since the election. Now that the next big spending bill backed by the administration may be focused on infrastructure, energy companies that work to help reduce carbon emissions are being targeted again today by investors.
Both companies reported continued net losses in recent fourth-quarter 2020 earning reports, but had encouraging messages for investors. Bloom CEO K.R. Sridhar said the company remains well positioned to continue to "solve critical energy problems like resiliency, reducing carbon emissions and costs." Plug Power management said it believes it is on track to meet recently raised business expectations for both 2021 and 2024. It also revealed plans to build North America's largest green hydrogen plant in western New York State.
Any infrastructure spending bill that includes support for green energy should benefit both companies. But investors should realize the stocks have already moved up over recent months, and neither are currently profitable.