What Happened?

A number of stocks fell in the afternoon session after the U.S. threatened to impose "massive increases" to tariffs on China in response to new export controls from Beijing. 

The potential countermeasures follow China's decision to place new restrictions on the export of strategic minerals and related products, including rare earths, which are critical for the defense, semiconductor, and manufacturing industries. This escalation in the economic competition between the two largest global economies is fueling investor anxiety. The new tariff threats raise concerns about disruptions to global supply chains, increased material costs for manufacturers, and a potential drag on an already sluggish economy. Industrial companies are particularly sensitive to these developments as they are often cyclical and heavily reliant on international trade.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Electronic Components company nLIGHT (NASDAQ: LASR) fell 3.2%. Is now the time to buy nLIGHT? Access our full analysis report here, it’s free for active Edge members.
• Specialty Equipment Distributors company Custom Truck One Source (NYSE: CTOS) fell 4.9%. Is now the time to buy Custom Truck One Source? Access our full analysis report here, it’s free for active Edge members.
• Specialty Equipment Distributors company Richardson Electronics (NASDAQ: RELL) fell 3.2%. Is now the time to buy Richardson Electronics? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company Plug Power (NASDAQ: PLUG) fell 5.5%. Is now the time to buy Plug Power? Access our full analysis report here, it’s free for active Edge members.
• Electrical Systems company Methode Electronics (NYSE: MEI) fell 3.9%. Is now the time to buy Methode Electronics? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Plug Power (PLUG)

Plug Power’s shares are extremely volatile and have had 100 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 1.1% after an analyst downgrade, key leadership changes, and a significant financing deal raised concerns. Investment firm Clear Street lowered its rating on the stock to “Hold” from “Buy,” citing valuation concerns after the shares had surged more than 150% in the prior month. Adding to investor uncertainty, the company announced that its president, Sanjay Shrestha, was stepping down from his role. Furthermore, Plug Power disclosed a warrant inducement agreement that would provide the company with roughly $370 million in immediate proceeds. However, the deal also granted new warrants which, if exercised, could create many more shares and lessen the value of existing ones, a process known as dilution.

Plug Power is up 53.4% since the beginning of the year, but at $3.58 per share, it is still trading 13.4% below its 52-week high of $4.13 from October 2025. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $202.66.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.