Hydrogen producer and distributor Plug Power (NASDAQ:PLUG) stock jumped 9% on July 11 and another 4% overnight on hopes that a Federal Reserve rate cut would make its plans more affordable.
Shares that were trading at $2.65 late on July 10 were trading at over $3.04 before the market opened this morning, July 12. That put the market capitalization at about $2.25 billion for a company expecting revenue of about $900 million.
Other clean energy stocks like SunRun (NASDAQ:RUN), Sunpower (NASDAQ:SPWR), and Enphase (NASDAQ:ENPH) were also up on the Fed news.
Money for Clean Energy
Lower interest rates will make clean energy plans more affordable and profitable, the thinking goes.
Plug Power produces “green” hydrogen with renewable energy. It also offers distribution, making both the fuel cells that use it and electrolyzers that produce it. The company has delivered 13 “fueling stations” in Europe over the last two years. It has gotten new electrolyzer contracts and hopes to benefit from federal tax credits.
But the company’s long term vision continues to clash with its short-term results. There were worries about whether it could remain a “going concern” last year. Those warnings have been withdrawn.
Analysts at Tipranks are now skeptical of Plug Power, while sentiment among traders at Stocktwits remains extremely bullish. Bulls point to every headline from Washington about possible government aid as a sign of better days to come.
Despite the company’s efforts to boost the stock, shares are down 36% in 2024 and down 74% over the last year.
PLUG Stock: What Happens Next?
PLUG stock will remain volatile on hopes for government aid. Profits would make it less volatile.
But the company lost almost $295 million, 46 cents per share, on revenue of $120 million in the most recent quarter. Its next report is expected on Aug. 9.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
