Shares of FuelCell Energy, Inc. ( FCEL ) are trading lower Tuesday, potentially in response to Plug Power's ( PLUG ) disappointing third-quarter financial report. Here’s what you need to know.

What To Know: Plug Power ( PLUG ) posted revenue of $173.73 million, below forecasts of $210.23 million. The company also reported a net loss of $211.2 million, or 25 cents per share, missing the consensus estimate for a loss of 24 cents per share, according to Benzinga Pro.

Plug Power ( PLUG ) also issued weak revenue guidance for 2024. The company said it expects 2024 revenue to be between $700 million and $800 million, versus analyst expectations of $823.46 million.

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Why It Matters: FuelCell Energy ( FCEL ), which operates in a similar sector and often moves in sympathy with Plug, is experiencing a decline in share price alongside Plug Power ( PLUG ).

Both companies share exposure to hydrogen-based solutions, and Plug's report appears to be influencing investor sentiment across the hydrogen and fuel cell industries. The sector-wide caution reflects challenges like the ongoing push for hydrogen adoption and the profitability hurdles that hydrogen companies, including FuelCell Energy ( FCEL ), continue to face.

Last week, FuelCell Energy ( FCEL ) announced a 1-for-30 reverse stock split in an effort to boost its stock price in order to regain compliance with Nasdaq listing requirements. Post-split trading commenced on Monday.

Clean energy stocks, including FuelCell Energy ( FCEL ), are facing additional selling pressure following Donald Trump's election victory last week. Concerns are mounting over potential policy shifts under a Trump administration, which could roll back support for clean energy initiatives, creating uncertainty about future growth prospects in the sector.

FCEL Price Action: FuelCell shares were down 8.91% at $6.08 at the time of writing, according to Benzinga Pro.

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Image: Courtesy of FuelCell Energy ( FCEL ) Inc.