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Why Plug Power, Bloom Energy, and Blink Charging Crashed This Week

By Neha Chamaria – Dec 17, 2021 at 10:38AM

Key Points

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These alternative energy stocks are doing things differently, but were hit by the same fears.

What happened

Alternative energy stocks have had a rough week, with shares across the board feeling the pressure. Notable losers include electric vehicle (EV) charging stock Blink Charging (BLNK -0.67%), and hydrogen and fuel cell players Bloom Energy (BE 0.29%) and Plug Power (PLUG -2.95%). Here's how much these stocks had fallen through the week as of 1 p.m. ET Friday, Dec. 17:

  • Blink Charging: Down 11.9%.
  • Plug Power: Down 9.9%.
  • Bloom Energy: Down 8.6%.

Ironically, each of these companies made some notable announcements this week that would have otherwise propelled these stocks higher. Yet, they're also growth stocks, and therefore couldn't escape the market's fury.

So what

Let's quickly recap the most important announcements from these three companies this week.

Plug Power, a manufacturer of hydrogen fuel-cell systems, is striving to foray into green hydrogen – a fuel that's getting more attention than ever now. Earlier this week, Plug Power announced a partnership with Certarus, a transporter of compressed natural gas, to develop a hydrogen infrastructure. Plug Power will supply Certarus with up to 10 tons per day of green hydrogen starting early 2022 that will then be transported directly to end users, including mining, power, energy, and industrials sectors. Plug Power sees this partnership as a step toward its goals to deliver 500 tons of green hydrogen per day by 2025 and 1,000 tons per day by 2028.

A worried person studying a falling graph on a laptop.

Image source: Getty Images.

On Dec. 15, Plug Power also signed an agreement to supply its fuel-cell engine to Korea-based electric vehicle manufacturer Edison Motors for electric buses. Edison Motors is Seoul's largest seller of electric buses, and together with Plug Power, it expects to have a fuel-cell bus prototype ready by the second half of 2022 with target launch in 2023.

Hydrogen fuel cells are seen as a viable source of clean energy, and Plug Power isn't the only one taking strides in the space. On Dec. 16, Bloom Energy announced tie-ups with a couple of the world's leading ship builders to fit 150 kilowatts of its fuel cells in a cruise liner under construction. It's the first such deal for Bloom Energy, and marks its definitive entry into the high-potential maritime industry.

Blink Charging, meanwhile, is gearing up for the annual Consumer Electronics Show (CES) to be held in Las Vegas in January 2022. Blink said it will launch seven new products at CES, including next-generation EV charging technology and a mobile app. Blink Charging is one of the companies expected to benefit from President Joe Biden's infrastructure law, which includes building a network of 500,000 EV chargers across the U.S. Just this week, the Biden administration unveiled an EV Charging Action Plan to outline the steps the government will take to kick off spending on EV infrastructure.

BLNK Chart

BLNK data by YCharts

So with all the action happening, why did these stocks fall in recent days? Macroeconomic concerns are largely to blame, including fears of lockdowns in the wake of the omicron coronavirus variant and rising inflation. Shares of companies in growth phases were hit the hardest as they typically also often command premium valuations when the going is good.

Now what

While macroeconomic fears like those related to omicron remain, the Federal Reserve's stance on inflation was welcomed by the market as it reflected the Fed's eagerness to tackle rising inflation. Investors in alternative energy stocks, though, should take a long-term view of the industry and company prospects instead of falling prey to panic-selling.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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