Why Plug Power Stock Surged 34% This Week
Shares of Plug Power (NASDAQ: PLUG) skyrocketed this week, surging 34.3% at its highest point in trading, according to data provided by S&P Global Market Intelligence. Investors in the hydrogen fuel cell maker aren't accustomed to such a solid rally -- Plug Power stock, after all, has been in a free fall and is still down 79% in just one year, as of this writing. This week's rebound, also the biggest rally in three years, has left investors hopeful that this is the bottom for the hydrogen stock.
Having flagged its poor cash position just months ago and even issuing a "going concern" warning, the market was rightfully jittery about Plug Power stock ahead of the company's annual business update. So when Plug Power said this week that it was close to securing a large amount of funding from the government, it was unsurprisingly a big catalyst for the languishing stock.
Plug Power said it had negotiated a loan of $1.6 billion with the Department of Energy (DOE) and could finalize the funding by the third quarter of this year. That's a lot of money for a company that had only $110 million in cash and cash equivalents as of Sept. 30, 2023, and clearly stated that its existing cash and securities available for sale will not be enough to fund its operations for the next 12 months.
Source Fool.com
