A market report recently published by news agency Bloomberg concludes we’re well on our way to a hydrogen revolution. I’d call it a megatrend. The report’s authors expect USD 2.5 trillion, that is, USD 2,500 billion, will pour into the hydrogen and fuel cell sector by 2050. The International Energy Agency agrees. Between 2018 and 2020, an estimated USD 1.5 billion per year went into developing the market, a figure said to climb to USD 38 billion by 2040. By 2050, investments will reportedly grow to USD 181 billion – again, per year. All these forecasts are based on targets already set by countries, global organizations and companies themselves.

That’s mighty good news for the stock market and the companies listed on it. In other words, the all-time highs the stocks discussed in this issue saw in February won’t be the end of the road. That the stocks have since lost some of their value can only be a sign to start buying again. Any company that has a good positioning strategy and, thanks to its technology and business model, is able to deliver convincing solutions is sure to experience above-average growth in the near future and generate high revenues in the long run. That, in turn, will have a positive influence on its stock and the market in general, as stock prices reflect everything that has or can have an impact on business.

February highs destined for a repeat

The past weeks have seen multiple rallies on the market come to an abrupt end, with some companies’ market caps suffering a heavy blow as a result. Now, stocks seem to be consolidating. In fact, the bottom seems to have been reached already. Prices are again on the up, albeit from a low base. The hefty drop could partly be the result of hedge funds, short sellers and other traders’ attempts to bring hydrogen and fuel cell shares to their knees.

… Read more in the latest H2-International e-Journal, May 2021

Risk warning

Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small- and mid-cap businesses, which means their stocks may experience high volatility. The information in this article is based on publicly available sources, and the views and opinions expressed herein are those of the author only. They are not to be taken as a suggestion of what stocks to buy or sell and come without any explicit or implicit guarantee or warranty. The author focuses on mid-term and long-term prospects, not short-term gains, and may own shares in the company or the companies being analyzed.

Author: Sven Jösting