What Happened?
Shares of fuel cell technology Plug Power (NASDAQ: PLUG) jumped 26.7% in the afternoon session after the U.S. Senate revealed changes to a GOP tax bill that extends hydrogen tax credits. The updated bill pushes the expiration of these crucial tax credits to January 1, 2028, giving hydrogen producers a two-year longer runway to scale operations and make green hydrogen more cost-competitive against fossil fuels.
For a company like Plug Power, which has been investing heavily in hydrogen production facilities but has struggled with profitability, this extension is a significant policy tailwind. The credits help lower the net cost of producing clean hydrogen, which could boost demand from industrial customers and improve the company's path to profitability. This news provides a much-needed boost for the stock, which is still down significantly over the past year.
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What The Market Is 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 biggest move we wrote about over the last year was 2 months ago when the stock gained 39.2% on the news that the company locked in a new loan of up to $525 million, boosting its cash pile and providing more headroom to support operations and future growth plans. It also shared strong early sales for the first quarter of 2025, beating Wall Street's estimates. Q1 2025 revenue guidance was estimated at around $130 million to $134 million.
Looking ahead, PLUG forecasted second-quarter 2025 revenue between $140 million and $180 million, aligning closely with analyst consensus and reinforcing confidence in its near-term outlook.
Plug Power is down 36.5% since the beginning of the year, and at $1.49 per share, it is trading 55.5% below its 52-week high of $3.34 from July 2024. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $180.27.
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