Plug Power Rockets Higher on Extended Deal with Hydrogen Partner
Key Ideas
- Plug Power stock surges 19.4% as the company extends a deal with a hydrogen partner through 2030.
- The partnership involves the supply of liquid hydrogen at a reduced cost and collaboration to enhance efficiency in the hydrogen network.
- The company hints that recent legislation played a significant role in facilitating the deal and expects market growth due to the legislation.
- While the deal is positive, investors are advised to await upcoming financial reports to gauge the impact on Plug Power's financial performance.
Shares of Plug Power surged 19.4% following the announcement of an extended deal with an unnamed leading U.S.-based industrial gas company, which is a hydrogen partner of Plug Power. The agreement involves the supply of liquid hydrogen at a lower cost and joint efforts to enhance the efficiency of the hydrogen network till 2030. Plug Power attributes the deal partly to recent legislation and anticipates market growth. However, concerns arise due to Plug Power's historical lack of profitability. Investors are cautioned to monitor the company's financial results in the upcoming quarterly reports before making investment decisions.