FuelCell Energy Triumphs as Plug Power Sets Path to Profitable Growth

FuelCell Energy Triumphs

If even Plug Power can't earn profits from fuel cell hydrogen, what hope is there for Bloom Energy and FuelCell Energy? 'Twas the morning after Earth Day, and all through Wall Street, lots of fuel cell stocks were stirring this morning. As of 10:20 a.m. ET, shares of Plug Power (NASDAQ: PLUG) had risen 8.2%, Bloom Energy (NYSE: BE) was up by 9.3%, and FuelCell Energy (NASDAQ: FCEL) was doing best of all -- up 11.9%. Considering the calendar, investor interest in renewable energy stocks this week was probably to be expected.

Plug sees pathway to profitable growth

Plug announced today it has "achieved nameplate capacity" (aka full production capacity) at its plants. Plug is producing about 25 tons per day (TPD) of liquid hydrogen fuel, and is on course to grow to 40 TPD over the next five months, aiming to reach $1.4 million in daily hydrogen sales. This transformation signifies a significant step towards profitable growth for Plug Power.

Buy fuel cell stocks?

While this development bodes well for Plug Power, the company has a history of losses despite revenue growth. As Plug aims for profitability, there are potential implications for FuelCell Energy and Bloom Energy, suggesting an optimistic outlook for the fuel cell market. However, with the historical profitability challenges faced by these companies, cautious consideration is advised before investment decisions.