PLUG stock is gaining momentum this morning after Plug Power Inc (NASDAQ:PLUG) received an order at the close of 2019 from a Fortune 100 customer for hydrogen fuel cell deployments.
Investors Cheer the News
One of the more interesting stories of 2019 was the turnaround in fortunes of fuel cell company Plug Power, and today, the company started off the New Year with another major announcement. Plug Power announced that it has managed to get a new order from a Fortune 100 company worth $172 million.
The company announced that it had won the contract back at the end of 2019, and according to the terms of the contract, it is going to last for two years. Plug Power is going to help with hydrogen fuel deployments for the company.
The news of the contract has created a lot of optimism around PLUG stock, and at one point this morning, PLUG rose by as much as 5.3%. Plug Power is likely to be in focus today, and investors could track the stock. At the time of writing, PLUG stock is up a whopping 13.93% at $3.68.
Andy Marsh, who is the Chief Executive Officer of the company, said of the developments: “This sizable contract signifies continual market validation to customer’s rapidly moving material handling business thus far.” Over the course of the past year, Plug Power stock has gained as much as 141%.
While it is true that PLUG stock has gained spectacularly over the course of the past year, it is important to consider its overall performance. Back in the late 1990s, the stock was trading for $1,000 a share, but now PLUG is a penny stock.
Moreover, the company’s customer base has dwindled considerably over the years, and experts believe that the prospects of hydrogen fuel might not be as promising as people have been led to believe. It has been pointed out that hydrogen fuel might be hard to mass market, and hence, Plug Power may struggle yet.
What do you think?
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