FuelCell Energy Stock Is Falling Today: What's Going On?

Shares of FuelCell Energy, Inc. FCEL are trading lower Tuesday, potentially in response to Plug Power's PLUG disappointing third-quarter financial report. Here’s what you need to know.

What To Know: Plug Power posted revenue of $173.73 million, below forecasts of $210.23 million. The company also reported a net loss of $211.2 million, or 25 cents per share, missing the consensus estimate for a loss of 24 cents per share, according to Benzinga Pro.

Plug Power also issued weak revenue guidance for 2024. The company said it expects 2024 revenue to be between $700 million and $800 million, versus analyst expectations of $823.46 million.

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Why It Matters: FuelCell Energy, which operates in a similar sector and often moves in sympathy with Plug, is experiencing a decline in share price alongside Plug Power.

Both companies share exposure to hydrogen-based solutions, and Plug's report appears to be influencing investor sentiment across the hydrogen and fuel cell industries. The sector-wide caution reflects challenges like the ongoing push for hydrogen adoption and the profitability hurdles that hydrogen companies, including FuelCell Energy, continue to face.

Last week, FuelCell Energy announced a 1-for-30 reverse stock split in an effort to boost its stock price in order to regain compliance with Nasdaq listing requirements. Post-split trading commenced on Monday.

Clean energy stocks, including FuelCell Energy, are facing additional selling pressure following Donald Trump's election victory last week. Concerns are mounting over potential policy shifts under a Trump administration, which could roll back support for clean energy initiatives, creating uncertainty about future growth prospects in the sector.

FCEL Price Action: FuelCell shares were down 8.91% at $6.08 at the time of writing, according to Benzinga Pro.

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Image: Courtesy of FuelCell Energy Inc.