What happened

Plug Power (PLUG -3.43%) extended its losses from yesterday and crashed again this morning. The fuel cell stock plunged 11.8% at 9:53 a.m. ET before regaining some ground. As of 11:40 a.m. ET, Plug Power shares were still down about 6.5%.

The market crash and rival Bloom Energy's (BE -3.22%) somber earnings report seem to be having a ripple effect on most fuel-cell stocks today.

So what

The green hydrogen industry is still in its nascent stage, and since Bloom Energy and Plug Power are the leading players in the industry, investors often extrapolate one company's performance and outlook to another.

A worried person studying a falling stock price chart on a computer screen.

Image source: Getty Images.

Bloom Energy released its first-quarter numbers yesterday after market close, and the company missed estimates on both its top and bottom lines. Specifically, although Bloom Energy generated record revenue in the quarter, its revenue grew a tiny 3.6% year over year and its gross margin slumped to 13.9% from 28.2% in Q1 2021. As a result, Bloom Energy's net loss more than tripled year over year.

Although Bloom Energy's management sounded excited about the numbers and confident about its 2022 outlook, its earnings miss has made investors in Plug Power nervous as the company's earnings date approaches. The sell-off in growth stocks that's continued since yesterday has only fueled negative investor sentiment.

Now what

Plug Power will announce its first-quarter numbers on May 9 after market close. Expectations are high from Plug Power, with consensus calling for almost 96% growth in the company's revenue and a loss of roughly $0.16 per share versus $0.12 in Q1 2021.

Plug Power generated record revenue in its last quarter, with 20% of its revenue coming from new business activity. Plug Power also projected 80% growth in 2022 revenue to between $900 million and $925 million. With the markets already uncertain, any miss from Plug Power could hit its stock price harder than usual, and that's why some market players are fleeing the stock today.