Plummeting stock prices for Plug Power and Nel ASA raise questions about their future performance.
In the world of clean energy, hydrogen stocks have been a subject of interest for investors. Two key players in this sector, Plug Power and Nel ASA, have been making headlines recently.
The establishment of an economically viable hydrogen infrastructure requires significant investments. This is a challenge both Plug Power and Nel ASA are facing. The International Energy Agency predicts global investments in clean energy technologies will almost double those in fossil fuels this year, offering a glimmer of hope.
Last Monday, Plug Power's stock saw an increase of over two percent. However, the company has failed to defend the important mark of two US dollars on the stock market. Its current value hovers just under 1.5 US dollars. A drop below one US dollar for Plug Power is not ruled out, as the chart indicates the need for a sustained recovery above two US dollars for a potential comeback.
Nel ASA, on the other hand, is currently trading at 0.43 euros. The Norwegian company has defended the support at 0.45 euros, but its need for recovery is regaining the same level. Nel ASA could soon test the next support at 0.40 euros.
Small peaks in Plug Power's stock are mainly due to money inflows from the American government. This is a trend that has been observed in the past. However, whether the money and patience of investors will suffice for the hydrogen industry remains to be seen in the coming years.
It's important to note that the positive signals from Plug Power and Nel ASA may not indicate a trend reversal. In the short term, both companies need a sustainable recovery above their respective key levels. For Plug Power, this means a sustained recovery above two US dollars, while Nel ASA must regain the 0.45 euros.
For investors, both Plug Power and Nel ASA shares are currently considered off-limits. This is due to the uncertain market conditions and the need for long-term success in the hydrogen industry. A hydrogen stock comeback for Plug Power and Nel ASA requires stable political incentives and subsidies to translate into concrete investment decisions, continued strong revenue growth, improved margins, operational discipline, realization of planned hydrogen projects, and a stable market environment driven by global decarbonization goals and falling green energy costs.
In conclusion, while there are positive signs in the hydrogen sector, both Plug Power and Nel ASA face challenges in the short term. A trend reversal is not imminent for either company, and investors should approach these stocks with caution. The key for both companies lies in the successful development of a viable hydrogen infrastructure and the ability to navigate the complexities of the clean energy market.
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