Shares of Clean Energy Fuels Corp. tumbled 9.6% in morning trading Tuesday, more than erasing the previous session’s rally, after Raymond James analyst Pavel Molchanov turned bearish on the provider of environmentally friendly fuel for the transportation industry, saying investors have gotten “carried away by headlines over substance.” Molchanov downgraded the stock to underperform, after being at market perform for the past 14 months. On Monday, the stock soared as much as 26.6% intraday before pulling back to close up just 6.3%, after the company announced a fuel supply agreement with Inc. , and said it issued Amazon warrants to by up to 53.1 million shares of common stock, which would represent about 27% of the shares outstanding. Molchanov said the stock’s gain on the news reflected “sentiment-driven multiple expansion with minimal read-through for profitability.” He noted that the supply agreement was for only 46 of Clean Energy’s 565 stations. “A non-exclusive supply deal pertains to 8% of Clean Energy’s stations — is that worth 27% dilution?” Molchanov wrote in a note to clients. The stock has rallied 36.2% year to date, while the Invesco WilderHill Clean Energy ETF has dropped 17.5% and the S&P 500 has gained 10.6%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit for more information on this news.