Plug Power Stock Is Climbing Again. What Could Be Behind the Rise?

The hydrogen technology provider is on a 10-day winning streak. (Courtesy Plug Power)

Key Points

About This Summary

• Plug Power shares rise Tuesday, extending a winning streak to 10 days that has roughly doubled the stock’s value.
• Plug Power, a company with no annual profit in 26 years, lost $2.1 billion in fiscal 2024 and is projected to lose $677 million this year.
• Plug Power is scheduled to report third-quarter earnings on Nov. 11.

Shares of Plug Power were climbing sharply Tuesday, extending the hydrogen technology provider’s bull run in September.

Plug Power stock rose 6.4% to $2.82 on Tuesday, putting it on track for a 10th consecutive positive session. The stock has roughly doubled over that period, according to Dow Jones Market Data.

As Barron’s reported last week, it isn’t clear what may be powering the rally for Plug Power, a heavily shorted name that hasn’t posted an annual profit in its 26-year history as a public company. The company hasn’t released any financial updates in recent weeks and doesn’t report third-quarter earnings until Nov. 11.

Wall Street got at least some material news this week, though. The company disclosed Monday that the hedge fund Heights Capital Management may resell up to 185 million shares of Plug Power common stock should it exercise warrants to receive them for $2 a share. The company would receive around $370 million in cash if all warrants were exercised, which could free up money for the company to continue sorting out its debt-heavy balance sheet.

That move may explain some of the 22% jump Monday in Plug Power shares, but the rest of the 10-day winning streak remains a mystery.

The company lost $2.1 billion in fiscal 2024 and is on track to lose around $677 million this year, per FactSet. More than 40% of shares are sold short, raising suspicions of a potential short squeeze, when short sellers must buy back shares to cover their positions.

At the very least, short sellers will be hoping the stock’s recent rise ends soon.

Write to Nate Wolf at nate.wolf@barrons.com