Why Plug Power Stock Is Soaring Today
Shares of Plug Power (NASDAQ: PLUG) jumped on Wednesday, up 24.7% as of 2:14 p.m. ET. The spike comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were up 0.4% and 0.6%, respectively.
The hydrogen power company announced today it has secured a multiyear extension to a key contract. The deal will see an unnamed partner continue to supply Plug Power with hydrogen through 2030. Critically, the new deal is more favorable financially, reducing overall cost to Plug Power and improving cash flows. The news is an important step toward stability, as Plug Power continues to burn cash.
As part of the announcement, Plug Power indicated that the new terms were made possible in part by the passage of the "big, beautiful bill," saying:
Source Fool.com
