Plug Power (NASDAQ:PLUG) stock is enjoying a strong day in the market following a company disclosure that it has filled its first tanker with liquid hydrogen at its newly opened Georgia plant. Indeed, the liquid hydrogen will be used by the likes of Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN), and Home Depot (NYSE:HD). The amount of liquid hydrogen shipped is expected to power more than 3,200 forklifts a day, according to the company.
PLUG stock responded positively to the news, climbing upwards of 15% in early morning trading. However, the stock has since returned some of its gains, up about 6% at the time of writing. Regardless, today’s increase only adds to PLUG’s gains on Wednesday, in which it added nearly 20% to its share price.
It’s worth noting that according to Plug’s Chief Executive, Andy Marsh, the company might face some difficulties in securing funding in the short term. However, he is optimistic that the company will end the year in a strong financial position. Marsh is so confident about the company’s future prospects that he is willing to avoid issuing more common stock to prevent potential short sellers from undermining the company’s growth.
“Everybody’s thinking I’m going to issue common [stock], and that’s probably not necessarily what we’re going to do,” Marsh said while noting short sellers may be in for something of a shock.
While PLUG has experienced some turbulence the past year, shedding nearly 75% of its value, the hydrogen fuel cell company has enjoyed some recent momentum.
PLUG Stock Enjoys Early Momentum on Georgia Hydrogen Plant
PLUG stock is currently trading for close to $5 per share, up about 2.5% year-to-date. While this is far from the company’s once-upon-a-time share price of $1,497, dating back to the early 2000s, the stock has grown in analyst sentiment of late.
This includes Roth MKM analyst Craig Irwin, who feels Plug’s new Georgia plant may be cause for excitement.
According to Irwin, the plant “gives us confidence the facility is ramping smoothly and all major technical issues are handled, addressing our prior concerns about backlog and margin visibility.”
Not everyone is stoked about Plug, however. BMO Capital Markets Analyst Ameet Thakkar downgraded PLUG stock just last week, arguing the company has an “increasingly arduous bath” ahead as it awaits potential funding for recently disclosed Department of Energy loan facilities.
The Georgia plant officially opened just a week ago, following a delay.
On the date of publication, Shrey Dua did not hold (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.
