What Happened?
Shares of fuel cell technology Plug Power (NASDAQ: PLUG) jumped 13.3% in the morning session after the company secured a $1.66 billion loan guarantee from the U.S. Department of Energy and benefited from a broader rally in clean energy stocks.
The move extended an impressive multi-day rally that saw the stock climb for eight straight trading sessions. A major catalyst was the DOE's approval of the loan, which funded the construction of up to six new hydrogen plants in the U.S., signaling strong government support. Favorable market conditions also played a role, as interest rate cuts by the Federal Reserve lifted clean energy stocks across the board. On the business front, Plug Power extended a key partnership with logistics company Uline through 2030 and forged a new collaboration with GH2 Global in Brazil. The company also posted strong results in its electrolyzer business, with sales soaring more than 200% year-over-year.
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What Is The Market Telling Us
Plug Power’s shares are extremely volatile and have had 98 moves greater than 5% over the last year. But moves this big are rare even for Plug Power and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 2.1% on the news that the company continued its rally, which was fueled by key business developments and strong sales performance.
This move added to a significant week-long climb where the stock soared over 40% in just a handful of sessions. The optimism stemmed from news that the hydrogen fuel cell company extended its partnership with logistics firm Uline through 2030 and forged a new collaboration in Brazil with GH2 Global. Adding to the positive news, an analyst from BTIG highlighted the company's robust operational performance. The note pointed to a more than threefold increase in year-over-year sales for Plug Power's Electrolyzer products in the second quarter, a surge that helped drive a 21% jump in the company's total revenue. The company-specific news was bolstered by broader positive sentiment for the hydrogen industry, including reports of its growing role in clean energy initiatives.
Plug Power is up 4.5% since the beginning of the year, but at $2.44 per share, it is still trading 22.7% below its 52-week high of $3.15 from January 2025. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $188.32.
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