Why Plug Power, Bloom Energy, and First Solar Sank Friday
The stocks of alternative energy companies are dropping again today. That includes hydrogen fuel businesses Plug Power (NASDAQ: PLUG) and Bloom Energy (NYSE: BE), as well as solar technology company First Solar (NASDAQ: FSLR). As of 11:20 a.m. ET, Plug shares were down 4.9%, while Bloom Energy and First Solar stocks were lower by 6.5% and 1.3%, respectively.
Several dynamics have been at work for clean energy stocks over the last several months. Many stocks in the sector moved higher in anticipation of the passage of federal climate legislation that ultimately became the Inflation Reduction Act (IRA). In the last three months, shares of Plug Power and Bloom Energy are up 35% and 27%, respectively. First Solar has soared more than 90% in that time.
But since the IRA was signed in mid-August, other factors have pushed the two hydrogen fuel cell stocks in the other direction. Both are down more than 20% since Aug. 16. First Solar, however, had continued to march higher. The macroeconomic environment, particularly with the Federal Reserve hiking interest rates by 75 basis points for the third straight time, likely explains why Plug Power and Bloom Energy have dropped.
Source Fool.com
