What's Going On With FuelCell Energy Stock?

FuelCell Energy Inc FCEL shares are volatile and trading lower by 6.3% to $1.04 Friday morning in sympathy with peer fuel cell power company Plug Power Inc PLUG after the company reported worse-than-expected third-quarter financial results.

What Happened With Plug Power?

Plug Power's stock plummeted Friday after the company issued a going concern warning due to a $3.8 billion deficit, negative cash flows, and projected operating losses.

The company cited "unprecedented supply challenges" in the North American hydrogen network for its third-quarter net revenue of $198.71 million and a net loss of 47 cents per share, both missing consensus estimates.

Plug Power expressed doubt about its ability to continue as a going concern, citing insufficient funds to sustain operations for the next 12 months...Read More

Why This Matters To FCEL Investors

The mention of "unprecedented supply challenges" in the North American hydrogen network by Plug Power may be raising concerns about the overall viability and scalability of the fuel cell industry.

If these challenges are seen as systemic rather than company-specific, it can impact the perceived potential for growth in the entire sector.

The going concern warning from Plug Power may also erode investor confidence in the overall fuel cell industry. If investors start to doubt the financial viability and sustainability of companies in this sector, they may sell off their holdings in related stocks, including FuelCell Energy.

See Also: What's Going On With Nvidia Stock Friday?

According to data from Benzinga Pro, FCEL has a 52-week high of $4.36 and a 52-week low of $0.98.