Before the weekend, shares in the hydrogen industry are literally collapsing. Why the sector is being hit by massive profit-taking.
• Hydrogen sector under pressure on Friday
• Profit-taking and the MSCI effect are weighing on the industry
• Volatility in the sector remains high
Hydrogen stocks deep red before the weekend
In a very weak overall market, the extremely volatile hydrogen sector was not spared on Friday. This is how shares were hit across the board: Plug Power shares on the NASDAQ fell by a whopping 10.69 percent to $3.2150, while industry colleague Ballard Power Systems even lost 18.95 percent to $4,9200. The European competition also suffered heavy losses. At the close of trading, the shares of NEL ASA were down 5.41 percent to NOK 2.98. ITM Power also ultimately posted double-digit losses in London at GBP 1.48 (-10.85%).
There was no uniform message driver. What the market is discounting is likely to be the overhang of a previously strong rally that has carried valuations well ahead of operational reality.
Profit taking after extraordinary rally
The hydrogen stocks were hit by a typical stock market phenomenon: After strong runs of well over 50 percent since the beginning of the year, even a lull in news and the lack of fresh catalysts can lead to the positions that have been built up being partially liquidated and investors taking profits.
With ITM Power there is an additional effect: After its inclusion in the MSCI index, which initially boosted the price and drove the share price to an annual high, the classic sell-the-news slump now follows. The pattern is well known: Index inclusions force a mandatory purchase for passive funds and ETFs, which drives up the price in advance. Once the rebalancing is complete, the artificial buying pressure is removed.
What the selloff means for investors
The real hydrogen market has not shrunk. The global market volume for hydrogen production reached around 282.6 billion US dollars in 2025. The fact that the prices of pure hydrogen stocks have decoupled from this is mainly due to the delayed profitability.
The pattern is not new to investors who know the sector: technology stories are enthusiastically pre-funded, operational confirmation follows. The volatility of hydrogen stocks such as Ballard Power, Plug Power, ITM Power or Nel ASA is structurally high, fueled by media attention and valuations that are at times far beyond operational reality. Anyone who invests in this segment should keep an eye on the difference between price and fundamental data.
Benedict Kurschat, editorial team at finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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