Nel ASA Shares Plunge to New Depths

The Norwegian hydrogen specialist Nel ASA finds itself in a perplexing market position. Despite announcing record-breaking contracts, its share value continues its relentless downward trajectory. Operational milestones are being met with investor panic and widespread selling, leaving market participants to question whether the company's growth narrative has permanently dissolved or if this severe downturn presents a bold entry point.

The selling pressure is overwhelming. On the Tradegate Exchange, the stock fell an additional 3.1 percent on Friday, settling at €0.198. This movement breached the psychologically significant €0.20 threshold, signaling profound weakness. Investors are navigating turbulent conditions as the share price dangerously approaches its 52-week lows and the gap to the 200-day moving average widens, confirming a persistent bearish trend.

This decline appears fundamentally disconnected from recent corporate news. In early November, Nel ASA secured a historic $50 million order for PEM electrolyzers, the largest in the company's history for this segment. Such news would typically propel a stock upward. Instead, the market response was a brief pause in the sell-off before the downward momentum resumed. This indicates a shift in investor focus away from long-term order books and toward immediate financial health.

Quarterly Report Shatters Confidence

The root cause of this sustained decline lies in the company's fundamentals. The latest quarterly figures delivered a shock that has severely damaged market confidence. A revenue decline of over 17 percent year-over-year to 303.37 million Norwegian Kroner carries more weight for investors than any new contract announcement. The marginal reduction in loss per share provided little consolation.

Should investors sell immediately? Or is it worth buying Nel ASA?

A clear discrepancy has emerged: the celebration of operational successes contrasts sharply with a contracting business visible on the balance sheet. The market is currently pricing in the significant risk that profitability remains a distant prospect. Without visible top-line growth, there is simply no catalyst to fuel a positive re-rating of the stock.

Key Data Points:
* Share Price Performance: The break below €0.20 underscores massive selling pressure.
* Market Reaction: The $50 million record contract failed to generate sustained positive momentum.
* Financial Results: Third-quarter revenue collapsed by more than 17%.
* Market Trend: A clear bear market persists, characterized by a continued buyer's strike.

A Path Toward Further Losses?

From a technical analysis perspective, there is currently little cause for optimism. With positive news failing to force a trend reversal, the path of least resistance continues to point downward. Market attention is now fixed on whether the support level around €0.166 can be defended. As analysts do not anticipate new catalysts before the next financial update in March 2026, the stock faces a potential prolonged period of weakness in the absence of immediate positive drivers.