Hydrogen fuel cell stocks are all people can talk aboutJune 29, 2021 3 By Tami Hood
Share prices are 40% away from the highs they’ve reached this year, so why the hype?
Last year, hydrogen fuel cell stocks had investors dancing in the streets, and now as prices are down 40 percent from their highest points, many are wondering if this is an ideal time to buy.
Hydrogen fuel offers an exceptionally promising opportunity as a source of clean energy.
As costs fall and governments around the world push for decarbonization, hydrogen fuel cell stocks have been sitting right in the middle of the spotlight. Investors have their radar trained on companies that have anything to do with H2. Last year, this appeared to be the ideal choice as prices soared. Ballard Power Systems (NASDAQ stock symbol BLDP) was the slowest growing but still achieved an increase of 225 percent. Plug Power (NASDAQ stock symbol PLUG), for instance, exploded by almost ten times.
A year later, investors have a different focus in this area, as they examine the types of risks associated with H2 stocks. This has many people trying to decide whether the recent tanking prices are a sign of things to come or if they’re an indication that it’s time to buy and to do it quickly.
All renewable energy share prices, not just fuel cell stocks, have seen declines throughout 2021.
It’s true that H2 related share prices have seen some considerable drops this year. In fact, on average, they’re 40 percent down from their highest points earlier in 2021. FuelCell Energy (NASDAQ stock symbol FCEL) saw a price plummet of 68 percent when compared to its highest point this year, pointed out a report from The Motley Fool.
That said, all renewable energy shares have seen their prices take a hit this year. H2 related ones may have suffered a harder hit, but they also rose much more quickly last year. The report also took care to point out that not all technology is seen as the same within their industry and by investors. While some is meant for transport applications such as heavy-duty vehicles, buses, long-haul trucks, etc, others are meant for vehicles such as forklifts, while yet others are used in power generators, for example.
As a result, different companies and different technologies fall within different markets. Though they are all seeking to improve their offerings, none have yet to achieve profitability. Still, according to the report, fuel cell stocks are still something investors should pay attention to. Its bottom line was that, “5 years from now, you’ll probably wish you grabbed these stocks.”