American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Plug Power stock price has crashed: short squeeze may be epic

by admin February 5, 2025
February 5, 2025
Plug Power stock price has crashed: short squeeze may be epic

Plug Power stock price has crashed and is hovering near its all-time low as most new energy companies came under intense pressure. PLUG has dropped by over 8% this year and 58% in the last 12 months, bringing its market cap to over $1.69 billion. So, is it safe to buy the Plug Power stock dip?

Why Plug Power stock price has crashed

Plug Power is one of the biggest niche companies in the United States. It is a vertically integrated firm that manufactures hydrogen products, which analysts expect will continue doing well over time. 

However, the industry has come under major headwinds this year. For example, Toyota, a top company that planned to dominate the hydrogen vehicle industry, has said that it will end passenger vehicle manufacturing amid weak demand. 

The other notable development is that Nikola, another top hydrogen trucking company, is on the verge of bankruptcy. It has already sold some of its machinery to Mullen Automotive, a firm that may also collapse as soon as this year. 

Further, Plug Power may go through a major challenge during the Donald Trump administration, which is expected to change its focus on renewable energy to fossil fuels. According to Bloomberg, the administration is considering cancelling a $400 billion program to finance clean energy projects. 

Plug Power has been a key beneficiary of this program as it received $1.6 billion financing in January. It is not clear whether the Trump administration will want to cancel the project, considering that Plug Power hopes to use these funds to build up to six hydrogen plants in the country. 

The government financing was an important part for the Plug Power stock as it ensures that it reduces dilution that has been going on for a while. Plug Power’s outstanding shares have risen from 306 million in 2020 to over 880 million today. 

Read more: Plug Power stock is risky, but a short squeeze can’t be ruled out

Analysts are optimistic about PLUG growth

Another positive is that analysts are highly optimistic about Plug Power’s future, helped by the US’s hydrogen demand. 

The most recent results showed that Plug Power revenue dropped to $173 million in the third quarter from $198 million in the same period a year earlier, Its nine-month revenue dropped to $437 million from $669 million a year earlier.

Most of Plug Power’s revenue still comes from the sale of equipment and related infrastructure. It hopes that the hydrogen fuel delivered to customers will continue doing well.

On the positive side, analysts are optimistic that the company’s business will continue doing well this year. The average revenue estimate for 2024 is $704 million, followed by $953 million this year. It will then cross the $1 billion in annual revenue in 2026.

At the same time, analysts anticipate that Plug Power’s business will make progress towards making profits. The loss per share will move from $1.8 in 2023, followed by $1.24 in 2024 and 62 cents in 2026. 

Plug Power stock price forecast

PLUG chart by TradingView

The weekly chart shows that the PLUG share price has remained in a tight range in the past few months. It has moved downwards, forming a descending channel. The stock has remained below the 50-week moving average, while the MACD indicator has formed a bullish divergence and is about to make a bullish breakout. 

The Relative Strength Index (RSI) has also made a series of higher highs, and higher lows, a positive sign of a bullish divergence. Therefore, while Plug Power stock is risky, a short squeeze cannot be ruled out. If this happens, the next point to watch will be at $4.9, its highest level in May last year, up by 130% from the current level.

The post Plug Power stock price has crashed: short squeeze may be epic appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
5 stocks under $10 to buy hand over fist to 5x your gains
next post
AMD’s post-earnings decline is a bit too unfair: here’s why analyst remains strongly bullish

Related Posts

Don’t freak out about the stock market’s inflation...

February 17, 2024

Stellantis share price has collapsed: death cross points...

March 6, 2025

S&P 500 slips as economic uncertainty weighs on...

March 21, 2025

Will Shiba Inu rally 50% after breaking key...

October 30, 2024

Curaleaf stock price forecast: is the CURLF crash...

February 18, 2025

Higher tax filing costs could take a bite...

February 3, 2024

Chinese stocks surge on AI optimism, nearing three-year...

February 14, 2025

Lucid stock price could be at risk amid...

January 8, 2025

Here’s why I’d sell SCHD and JEPI ETFs...

April 22, 2025

Alphabet and Microsoft earnings approach: Microsoft looks like...

October 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved