What Happened?
Shares of fuel cell technology Plug Power (NASDAQ: PLUG) jumped 2.1% in the morning session after 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.
After the initial pop the shares cooled down to $2.15, up 2.4% from previous close.
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What Is The Market Telling Us
Plug Power’s shares are extremely volatile and have had 99 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 21 hours ago when the stock gained 4.7% on the news that investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points yesterday and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets.
This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
Plug Power is down 7.7% since the beginning of the year, and at $2.15 per share, it is trading 31.7% 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 $160.93.
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