Plug Power Hits 'Meme Stock' Potential After $370 Million Move
The hydrogen power name should benefit from the ongoing change in energy demand.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
What the heck is going on with the former "Stocks Under $10" portfolio holding Plug Power PLUG?
Plug who? Plug Power. It's been that long since we thought about this one. You remember: the "green energy era" darling that has, for the most part, gone by the wayside as the exponential increase in demand for energy created by the expansion of cryptocurrencies, data centers and generative artificial intelligence has forced businesses to move away from forms of energy generation that had appeared to be the future not long ago.
As the world has turned back to fossil fuels as the preferred method for energy generation, it has become abundantly clear that even fossil fuels will not be inexpensive enough for the ramp up in production that has become necessary. Nuclear energy is the obvious answer, and guess what? It's clean. So, there is somewhere to go that might satisfy all sides on this controversial issue.
In the meantime. Power Plug, the provider of an end-to-end green "hydrogen" energy ecosystem selling services from production to storage and delivery to energy generation to its clients, has struggled. The stock peaked at $75.81 in early 2021. On Monday, the stock closed at $2.65 and that was up 21.6% for the day. The stock actually bottomed at $0.69 this past May. On Tuesday morning, the stock traded as high as $3.16 before profit takers moved on the stock and forced it a bit lower.
What's Going On?
On Monday, Plug Power filed a Form 424B7 of prospectus supplement related to the potential resale of some or all of the 185.43 million shares of common stock that could be issued upon the exercise of the warrants currently held by the seller. These warrants were issued under an underwriting agreement on March 19, 2025. These warrants have a $2 exercise price and will expire on March 20, 2028. Once exercised in full, the firm would realize gross proceeds of $370.86 million.
The rally in this stock, which started this past Spring, has in part been attributed to the increased need for power mentioned above and those in need drawing energy from wherever they can get it. Readers should also be cognizant of the fact that as of three weeks ago, more than 305 of the entire float was held in short positions. This brings a short squeeze aspect to any upward moves made by the stock. I would not invest in this stock, but a trader looking to catch a short squeeze might believe that there is going to be more to it than we have seen to date. Plug Power has meme stock potential.
What I find amazing is that any trader would still be short a low-single digit stock that traded as high as $75 less than five years ago and above $5 in 2024. If I were to play the short squeeze possibility as a trader, I would much rather lay out the $0.70 or so that the January $3 calls would cost me than to actually buy the equity. The idea is the same while tying up only a quarter of the capital on something that is very likely a long shot.
In Other Stocks Under $10 News
Rocket Lab RKLB announced on Tuesday morning that the firm has delivered two Explorer-class spacecraft to Kennedy Space Flight Center for NASA's Escape and Plasma Acceleration and Dynamics Explorers mission.
Where are these spacecraft headed? Mars. No joke.
The Escape and Plasma Acceleration and Dynamics Explorers mission is a dual-spacecraft project set to study Mars' magnetosphere and atmospheric escape by orbiting the planet and collecting real-time plasma and magnetic field data. For these two spacecraft, the cruise to Mars is expected to take 22 months.
On Tuesday morning, two highly rated sell-side analysts opined on Palantir Technologies PLTR and increased their target prices.
Mariana Perez Mora of Bank of America, who is rated at five stars by TipRanks, reiterated her "buy" rating on PLTR while increasing her target price from $180 to $215. In addition, Gregg Moskowitz of Mizuho Securities, who is rated at four stars by TipRanks, did just the same. Moskowitz reiterated his buy rating and increased his target price from $180 to $215.
It is reaffirming to see Wall Street playing "'catch up" on Palantir. Our $218 target price remains the "Street high," but we do welcome the company at these levels.
There's one thing that you and I have that these sell-side analysts more than likely do not: that's called "skin in the game."
At the time of publication, Guilfoyle was long RKLB and PLTR equities.
