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Hydrogen Stocks Swerving Amid Trump's Tariffs: Turnaround on the Horizon?
The future of hydrogen stocks like Nel ASA and Plug Power seems shaky at present. With the recent slump caused by President Trump's tariffs, these stocks are in a dire situation, with little hope for a speedy recovery.
So, is it still possible for a turnaround? Well, on the bright side, the industry is a promising one. But is that shining light enough?
Escalating Troubles for Nel ASA and Plug Power
Both Nel ASA and Plug Power are grappling with a precarious position, fueling a steep descent in share prices.EVEN after the tariff announcement, the fall continues unabated. Nel ASA briefly touched the 0.20 euro mark but bounced back. By contrast, Plug Power hasn't experienced any such reprieve. Analysts are getting restless, and the predicted potential upside of 100% by Wall Street is now pegged at a mere 75%. The bears are gaining ground.
Despite the persistent challenges, there's a glimmer of hope.
Mr. Power's Momentum: A Ray of Sunshine
Plug Power's situation is not as bleak as it may seem. They've managed to secure a hefty $525 million financing package, with $210 million readily available to bolster operations and expand infrastructure. Moreover, the company has formed strategic partnerships with heavyweights like Amazon, Walmart, and Home Depot, which could strengthen its position for years to come. Even European expansion seems on the cards, as agreements with Toyota Material Handling Europe and STEF Group materialize.
The Nuances of Investing in Hydrogen Stocks
If you're considering an investment, you have all the information at your fingertips. But, the tariffs pose a continuous threat, potentially protracting the downturn. For now, the signs indicate a prolonged recovery that's not set to happen soon.
Additional Read: Gold: Is it a Safe Haven Now? Experts Advise!
Or: Is the plunge continuing? Warning from the World's Most Powerful Banker!
- The tariffs imposed by President Trump have led to a steep descent in the share prices of hydrogen stocks like Nel ASA and Plug Power, creating a precarious position for both companies.
- Despite the challenges posed by the tariffs, Plug Power has secured a $525 million financing package and entered strategic partnerships with major corporations, which could secure its position for years to come.
- Investing in hydrogen stocks could be a promising opportunity, but the continuous threat of tariffs may prolong the recovery period, making it a less attractive option in the short term.
- However, the hydrogen industry itself offers a bright outlook, potentially justifying the investment in these stocks as a long-term strategy, despite the current downward trend in the stock-market.
