Plug Power Inc. (NASDAQ: PLUG) enters a holiday-shortened week with its stock price at $3.78, unchanged from a week earlier, following a sharp midweek rebound. U.S. cash equity markets were closed Monday for Memorial Day, with the New York Stock Exchange listing May 25 as a market holiday.
The stock's recent trajectory has been anything but smooth. After falling 8.73% on May 18 and dropping another 4.06% on May 19, the shares stabilized on May 20 before surging 14.20% on May 21. The rally was fueled by news that the company's 30-megawatt Barrow Green Hydrogen project in Cumbria, UK, had reached a final investment decision (FID), marking the point where sponsors commit capital and the project moves toward execution.
The broader hydrogen sector also saw gains, with Ballard Power Systems climbing 14.08% on the same day. Bloom Energy was in focus after Barron's reported a $2.6 billion, 328-megawatt power deal with Nebius Group for data centers. However, Plug Power's move outpaced the Nasdaq Composite's 0.09% gain and the Dow's 0.55% rise, according to MarketWatch data.
Plug Power's Barrow project will supply six 5-megawatt GenEco PEM electrolyzers, equipment that uses electricity to split water into hydrogen and oxygen. The project is expected to produce about 100 gigawatt-hours of green hydrogen annually for Kimberly-Clark's local manufacturing plant. Jose Luis Crespo, Plug's president and CEO, stated that Barrow is "moving our largest UK project from award into execution." Kristian Høeg Madsen of Schroders Greencoat called it the firm's "first move into hydrogen at scale," while Carlton Power's Eric Adams praised Plug as a "strong partner."
The company's first-quarter results, released earlier this month, showed revenue rising 22% year-over-year to $163.5 million. GAAP gross margin improved to negative 13% from negative 55% a year earlier, while adjusted earnings per share narrowed to a loss of 8 cents. Crespo cited "strong commercial execution" and reiterated the company's target of achieving positive EBITDAS in the fourth quarter.
Analyst reactions have been mixed. B. Riley raised its price target to $5 from $3 and maintained a Buy rating following the revenue beat, according to Investing.com. However, BMO, TD Cowen, RBC, and KeyBanc noted progress but flagged ongoing margin or execution issues. Wells Fargo's latest target stands at $2.50, and Benzinga's analyst page lists a Hold consensus.
Despite the positive developments, the company's cash position remains a significant concern. Plug Power used $150.0 million in cash from operating activities in the first quarter, posted a net loss of approximately $246.0 million, and had an accumulated deficit of $8.5 billion as of March 31. The company expects about $275 million in proceeds from hydrogen project monetization efforts and is targeting the sale of a $39.2 million Section 48 investment tax credit tied to its St. Gabriel joint venture by the end of May.
Looking ahead, the focus for investors will shift from headlines to cash. Regular Nasdaq trading resumes Tuesday, and the stock's next move may depend less on sector momentum and more on whether Plug can demonstrate that project milestones, asset sales, and margin improvement are translating into tangible cash flow improvements.
