Shares of Plug Power Inc (NASDAQ:PLUG) are plunging Friday afternoon, caught in a market-wide rout driven by a dual shock of dire economic data and escalating geopolitical conflict. The clean energy manufacturing company, known for its stock volatility, was hit particularly hard late Friday as investors shed risk assets.
What To Know: The market turmoil was ignited by a shaky July jobs report. The U.S. economy added only 73,000 jobs, far below the 110,000 expected, while the unemployment rate unexpectedly spiked to 3.9%. Making matters worse, job numbers for May and June were revised down by a combined 258,000, signaling that the labor market is cracking.
For a growth company like Plug Power, fears of a looming recession are toxic, as an economic downturn would likely slash capital spending from industrial clients, directly curbing demand for its hydrogen fuel cell technology.
Compounding the economic anxiety, reports of heightened U.S.-Russia tensions sent Wall Street's “fear gauge,” the CBOE Volatility Index, surging by 27%. This triggered a classic risk-off flight to safety, with investors dumping speculative stocks and running to safe-haven assets.
In this environment, high-beta growth stocks like Plug Power are among the first to be sold. The potent combination of recessionary pressure and acute geopolitical risk created a perfect storm, likely overwhelming any optimism from traders now pricing in Federal Reserve rate cuts later this year.
Benzinga Edge Rankings: Based on Benzinga Edge data for Plug Power, the company exhibits the profile of a value stock that is struggling with market momentum and business growth. The data shows a very strong Value score of 74.81, which would suggest the stock is trading at a discount relative to its financial metrics.
In stark contrast, its scores for Momentum (14.29) and Growth (15.44) are exceptionally low, indicating significant negative price trends and sluggish expansion.
It is worth noting that this combination of very low growth and high value is atypical for a company like PLUG, which is generally classified by its high-growth prospects.
Price Action: According to data from Benzinga Pro, PLUG shares are trading lower by 6.67% to $1.40 Friday afternoon. The stock has a 52-week high of $3.32 and a 52-week low of $0.69.
Read Also: Eurozone GDP Growth Pops A Surprise: These ETFs Are Winning The Game
How To Buy PLUG Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Plug Power’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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