Why Investors Pulled the Plug on Plug Power Stock This Week
Shares of hydrogen fuel company Plug Power (NASDAQ: PLUG) have been steadily sinking this week. As of Friday midmorning, Plug stock had lost 17% compared to its closing price last Friday, according to data provided by S&P Global Market Intelligence.
The company itself didn't provide any news releases this week. Instead, it has been a story of interest rates. The benchmark 10-year Treasury yield jumped this week. The 5- and 10-year notes, along with 30-year bonds, are at the highest levels since August 2007.
The result was a stampede out of stocks of renewable energy companies like Plug Power. Even shares of profitable, dividend-paying companies like NextEra Energy are down nearly 20% on the week. That's because the capital needed to build out these renewable energy businesses just got more expensive.
Source Fool.com
