What happened
Shareholders of green hydrogen and fuel cell company Plug Power (PLUG -6.95%) have had a rough past month with the stock dropping more than 30%. Shares lost another 4% this morning, after a peer announced a disappointing quarterly financial report. But as of 11:20 a.m. ET, Plug Power stock had recovered to a small gain of 1%.
So what
Fellow clean energy technology company FuelCell Energy released its fiscal fourth-quarter 2021 report this morning, and it missed expectations on both the top and bottom lines.
Image source: Getty Images.
FuelCell actually reported a year-over-year drop in revenue in its fourth-quarter period ended Oct. 31, 2021, as well as a net loss that increased versus last year. It also showed that its project backlog hasn't grown over the past year. Plug Power investors took note of both before perhaps digging a bit deeper.
Now what
The initial move of Plug stock based on FuelCell's report looks to simply be a knee-jerk reaction. When Plug Power reported its third-quarter results last month, it said that its quarterly revenue jumped 34% year over year. It also raised revenue guidance for 2022 as it enacts its growth strategy through acquisitions and joint ventures.
Plug has announced several green hydrogen production projects in the U.S. this year. It has expanded its geographic coverage to support a hydrogen economy, including plans for the largest hydrogen production plant to use renewable energy on the West Coast. Plug also has expanded partnerships overseas to boost hydrogen fueling infrastructure and develop hydrogen-powered commercial vehicles. As the morning progressed, investors seem to have realized lumping Plug in with FuelCell after the latter's disappointing results didn't really make sense.
