Why Plug Power Shares Plunged 4% on Friday
Shares of hydrogen company Plug Power (NASDAQ: PLUG) fell 4% on Friday, losing some of the momentum it had earlier in the week. Shares ended the week down 9%, and that's concerning given some big announcements.
Yesterday, Plug Power announced a deal with SK Plug Hyverse, Coupang Fulfillment Services, and Kendall Square Asset Management to build "eco-friendly hydrogen fulfillment centers in South Korea. That followed an announcement in late August to provide Amazon (Nasdaq: AMZN) with green hydrogen starting in 2025.
These all sound like great developments, so why is the stock down today? One reason is that Plug Power gave Amazon warrants to acquire 16 million shares, continuing Amazon's trend of getting warrants as an incentive to sign supply agreements, which shows Plug Power's weak negotiating position.
Source Fool.com
