Why Plug Power Stock Plunged Today
It must be getting increasingly difficult for investors in Plug Power (NASDAQ: PLUG) to hold their nerve. The hydrogen stock sank Tuesday morning and was down by 8.9% as of 1 p.m. ET. With that drop, Plug Power stock has now lost almost 30% of its value in just the month of May.
The broad stock market indices also tumbled Tuesday, in part due to a tech sell-off triggered by social media company Snap (NYSE: SNAP), which warned that its growth was decelerating and revised its guidance downward.
You may wonder why Plug Power stock crashed given that it has nothing to do with social media or even tech, for that matter. The thing is, it's a growth company that's still trying to establish itself in a nascent industry. A rising interest rate environment already adds to the challenges such companies face, and those headwinds could worsen if economic growth starts slowing down -- or worse, if there's a contraction.
Source Fool.com
