Plug Power Inc PLUG shares are trading lower by 8.3% to $4.21 during Wednesday's session. Various sectors are witnessing a downturn Wednesday, potentially influenced by increasing Treasury yields and profit-taking following December 2023 strength. Additionally, uncertainties surrounding upcoming economic reports and Federal Reserve speeches are contributing to this trend.
Investors are anticipating confirmation on projected rate adjustments and closely monitoring the Federal Reserve's December meeting minutes along with job-related data.
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The Significance of Climbing Yields
Growth stocks like Plug Power often hinge on projected future cash flows for their valuation. As interest rates climb, the discount rate employed in discounted cash flow models rises correspondingly.
A heightened discount rate has the potential to diminish the present value of forthcoming cash flows, impacting the perceived worth of growth-oriented stocks.
According to data from Benzinga Pro, PLUG has a 52-week high of $18.88 and a 52-week low of $3.22.
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