Actions of Clean energy fuels (NASDAQ: CLNE) jumped 27.5% in February, according to data from S&P Global Market Intelligence. After an increase of more than 50% earlier in the month, the stock corrected. Still, it was a remarkable move throughout the month.
Clean Energy offers compressed natural gas (CNG), renewable natural gas (RNG) and liquefied natural gas (LNG) via a national network of service stations. As such, its course of action is likely to follow sentiment regarding the possibility of large-scale adoption of natural gas as a more environmentally friendly fuel.
This case received a boost on February 8 after a Reuters report this Amazon had ordered hundreds of CNG trucks. The report said the orders were for Cummins Westport, a joint venture between the engine maker Cummins (NYSE: CMI) and Westport Fuel Systems (NASDAQ: WPRT).
As such, it was no surprise to see the shares of Westport and Clean Energy move in tandem over the month.
Feeling is a powerful thing, and it is even stronger when backed by evidence. Against this backdrop, it’s not hard to see why investors got excited about the Amazon news. It certainly doesn’t hurt that a company the size of Amazon invests in technology that supports clean energy fuels.
Clean Energy Fuels will release its fourth quarter 2020 results on March 9. This will give analysts and investors the opportunity to weigh management’s thoughts on how the industry is growing and what deals like Amazon’s could mean in the long run.
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