What Is Going on With Plug Power (PLUG) Stock Today?


  • Plug Power (PLUG) announced an agreement with Olin (OLN) to construct a large hydrogen plant.
  • In addition, Plug Power and Freezpak Logistics plan to provide fuel cells and other hydrogen equipment to more U.S. states.
  • PLUG stock dropped more than 5% this morning as traders considered these developments.
PLUG stock - What Is Going on With Plug Power (PLUG) Stock Today?

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There are not one, but two need-to-know pieces of news concerning Plug Power (NASDAQ:PLUG) today. First, Plug Power has entered into an agreement with Olin (NYSE:OLN) to build a hydrogen plant in Louisiana. Also, Plug Power expanded its arrangement with Freezpak Logistics to provide fuel cells and other hydrogen-related items. These might sound like positive developments, but PLUG stock still declined early in the trading session.

Plug Power is known among some traders as a fuel cell provider. However, the company has expanded into a more diversified hydrogen solutions provider. For example, Plug Power will team up with chlorine/chloride product and electrolytic hydrogen producer Olin to construct the aforementioned 15-ton-per-day hydrogen plant in Louisiana.

This joint venture is part of a much larger hydrogen strategy for Plug Power. The company intends to to produce 500 tons per day of liquid green hydrogen by 2025, and 1,000 tons per day by 2028.

PLUG Stock Drops Despite Collaboration News

In addition, Plug Power will expand its arrangement with food logistics company FreezPak Logistics. Together, the two companies will to provide fuel cells as well as hydrogen storage and fueling infrastructure to nine additional sites.

Consequently, Plug Power will support 11 U.S.-based customer sites in total. The expanded partnership with FreezPak will, according to Plug Power CEO Andy Marsh, further improve the American supply chain and decrease carbon emissions.

FreezPak will certainly benefit from its arrangement. Already, the company has seen a reduction in its electricity bills. Moreover, FreezPak has observed an increase in its usable space.

The deals with FreezPak and Olin should benefit Plug Power, as well. How did today’s traders respond to all of this news, though?

As it turns out, PLUG stock fell more than 5% this morning. This might be a counterintuitive reaction, but Wall Street isn’t always logical in the short term.

Perhaps today’s traders simply aren’t in the mood to buy so-called growth stocks, which have been out of favor in 2022. Still, it’s possible investors will just need to some time to mull over Plug Power’s announcements. Indeed, soon enough, today’s sellers could become dip-buyers.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/10/what-is-going-on-with-plug-power-plug-stock-today-2/.

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