Rabbit Hole Investors take on the top trending stocks today. And please feel free to express your opinion in the comment section down below.
Plug Power $PLUG +19%
Plug Power is a leading hydrogen technology company. And they manufacture hydrogen fuel cels, refueling stations, and electrolyzers. According to them they also generate hydrogen in a green way. The stock is trending today as they are partnering with the Koren company SK group in $1.5 billion dollar deal to form a joint venture company. This is in accordance with the South Koren government’s efforts to bring 6 million fuel cell-powered cars and 1200 refueling stations. Today the stock is up 19% pre-market trading. And the market cap is $14.54 billion.
And now our take. Fundamentally using hydrogen is inefficient. That is because more energy is being wasted from the energy source to your car. Fuel cell cars achieve 25-30% efficiency. On the other hand battery, EVs achieve 70% to 70%. That’s more than double! And as 95% of industrial hydrogen is made from that sweet sweet oil we can’t really say its green. And hydrogen needs to be stored at super-high pressures. Plus it burns with an invisible flame. Making spills and fires extremely dangerous and hard to put out. Score: 1/10.
FuelCell Energy $FCEL +12%
FuelCell Energy is also a fuel cell maker. The stock is up +12% premarket. Also, the stock is trending today fueled by a $3 million award from the department of energy. As well as from the democrat’s taking control of the house, the senate and the presidency. Now the Biden administration will subsidize “green” energy companies. Score: 1/10.
Nio Limited $NIO +5%
Many people’s favorite Chinese EV maker. Also the 6th largest carmaker by market cap. More than GM, BMW, Ferrari, and Honda. The stock is trending today and up pre-market because of a few catalysts. First is anticipation for Nio day. Which will on January 9th. Another catalyst is that they are reportedly planning cheaper models with cheaper batteries as well. And that is reasonable. Every $5000 price cut opens up the car to a 5 times larger market. Google trends also indicate a lot of interest in Nio stock. The interest is almost as much as Tesla stock at the moment. And lastly, the stock could just be recovering from yesterday’s 5% drop. With cheaper batteries, good deliveries, the right technology (not hydrogen) it is difficult to be bearish for Nio Stock. Score: 8/10.
Disclaimer: The author does not hold a position in any of the stocks mentioned.