Stock Market Today, Dec. 23: Plug Power's Namibia Launch Fails to Lift Investor Sentiment

Plug Power (PLUG 2.84%), extended its losses on Tuesday, closing the session at $2.05, down 2.8%. The developer of hydrogen fuel cell and electrolyzer systems is down almost 10.5% in the past five days.

Tuesday’s trading volume reached 81.3 million shares, about 39% below its three-month average of 129.6 million. Positive news about its Namibia electrolyzer installation failed to boost this volatile stock. Plug Power IPO’d in 1999 and has fallen 99% since going public.

How the markets moved today

The S&P 500 (^GSPC +0.46%) added 0.44% to finish at 6,909, while the Nasdaq Composite (^IXIC +0.57%) gained 0.57% to close at 23,562. Within hydrogen fuel cell systems, industry peers Bloom Energy (BE 0.90%) and FuelCell Energy (FCEL +0.40%) posted mixed moves, underscoring how data-center and infrastructure opportunities are driving stock-level divergence.

What this means for investors

Last week, Plug Power announced it had installed an electrolyzer at Cleanergy Solutions in Namibia. However, the launch of Africa’s first fully integrated commercial green hydrogen facility was not enough to prevent the stock’s further decline.

Bronstein, Gewirtz & Grossman said yesterday that it would investigate potential shareholder claims. The issue? Plug Power suspended the development of green hydrogen plants, which could put a $1.7 billion DOE loan at risk.

Another factor that plays on investor sentiment is Plug Power’s November announcement that it would offer $375 million of convertible notes. This dilutes shareholders’ stakes and raises concerns about execution and financing.