Hydrogen stocks: The big bang at Plug and Nel

Unbelievable what happened to the shares from the hydrogen sector on Tuesday. The members of the sector slid massively downwards. At its peak, the US stock Plug Power lost more than 9 %. Now it is getting tight.

Plug Power and Co. that bad?

The reasons are manifold. Plug Power, for example, is certainly the worst of the stocks, and not only because of the general mood on the stock market. The US company recently reported its quarterly figures. This was apparently not as good as the stock markets had expected.

This share in turn caused bad mood among all candidates from the same sector. In any case, the reports have been pouring in. Allegedly, the US company reported “unexpectedly” high losses. The fact that this was “unexpected” is false. In previous days we have already reported here that it is part of Plug Power’s programme to produce “unexpectedly” high losses.

We had already pointed out that Plug Power is aiming for a good 900 million euros in sales this full year. This in turn can only succeed if the figures for the first quarter also suggest such a high development. However, the figures are at best at the level of the previous year, which means that the previous year’s result of a good 500 million euros will hardly be changed in the year as a whole.

Plug Power’s plans, however, are of a larger nature. As always, the company has formulated high expectations. By the end of the year, 70 tonnes of hydrogen are to be produced daily. By 2025, Plug Power has indicated, 500 million tonnes of hydrogen will be produced. Will this become reality?

At any rate, Plug Power is currently struggling with its sales figures. If a good 500 million euros were generated in the current year, the target of 3 billion dollars in 2025 would be far away. According to the information, the gross margin should also improve. 30 % of the turnover serves the margin, and operationally a margin of 17 % is to be achieved. Will these targets be realised?

The question is certainly open. As is always the case at present, the company is beton optimistic and is missing its targets. The share itself posted a loss of more than -5.5% on Tuesday. This is about -29 % for one week. Among the hydrogen shares, no stock has performed as badly as Plug Power. Among the smaller shares in the sector, i.e. among Ballard Power, Nel Asa and others, Plug Power is even the top loser over one month. The share price has slid by a good -39 %.

Since the beginning of the year, the US share price has already fallen by more than -40 %. The results can therefore be interpreted as a downward trend.

The other stocks are also doing badly in this climate. Ballard Power also delivered figures. Like Plug Power, the Canadians disappointed the stock markets. The Canadian company reported “unexpectedly high losses”, according to analysts. The outlook for the coming months also seems to have disappointed. It was criticised that the Canadians (unlike Nel Asa and Plug Power, for example) had not named any major orders. This is not entirely correct. Ballard Power has subsequently described a project with a Chinese company called Wisdom Motor Company. This company produces commercial vehicles, but they do not emit emissions. However, there is no direct answer to the question of how valuable the contract or collaboration is – in this respect, the stock market reactions are not surprising. On Tuesday, Ballard Power had to accept a discount of more than -1.6%. In one week, the share price has fallen by -25 %. Since the beginning of the year, Ballard Power has lost more than -40 %. The bottom line is that sentiment is also bad for Ballard Power.

Nel Asa got off relatively lightly with a minus of -14 % in one week. But the Norwegians have also embarked on a clear downward trend. This conclusion can be applied to the entire industry.