Plug Power Inc. shares were trading near the $4.12 mark ahead of the opening bell on Friday, stabilizing after a period of sharp price swings that have brought renewed attention to the hydrogen fuel cell company. The stock's premarket activity was brisk as traders awaited the regular Nasdaq session, which runs from 9:30 a.m. to 4:00 p.m. ET, with no market holidays scheduled for May 29.
On Thursday, Plug Power shares edged down 0.48% to close at $4.12, retreating from a strong rally in the prior session that saw the stock surge 7.81% to $4.14. Trading volume on Wednesday exceeded 110 million shares, a level that has investors questioning whether the recent move is driven by fundamentals or mere momentum.
The broader market backdrop was supportive, with both the S&P 500 and Nasdaq Composite reaching new all-time highs on Thursday, fueled by broad-based gains. Jamie Cox, managing partner at Harris Financial Group, noted in a Reuters interview that traders remain on edge, ready to react to deal headlines and any signals of inflationary pressure.
Plug Power's fundamental outlook hinges on its first-quarter results, which showed revenue of $163.5 million, a 22% increase year-over-year. Gross margin improved to negative 13% from negative 55% in the prior-year period. The company reported an adjusted loss per share of $0.08, while the GAAP loss stood at $0.18 per share. CEO Jose Luis Crespo stated that the quarter positions Plug Power to achieve its EBITDAS positive target in the fourth quarter. EBITDAS is a non-GAAP metric that excludes interest, taxes, depreciation, amortization, and share-based compensation.
Cash management remains a key focus for investors. On the earnings call, CFO Paul Middleton assured analysts that the company has more than adequate capital to fund operations through 2026, citing $802 million in total cash, along with restricted cash releases and asset sales as supporting factors. However, Plug Power continues to burn through cash, reporting a net loss of $246 million for the quarter and cash used in operations of $150 million. These figures underscore that the stock's performance will depend on execution as much as revenue growth.
Trading among hydrogen sector peers was mixed on Thursday. Bloom Energy slipped approximately 1.3%, while FuelCell Energy added about 3.0%, suggesting that Plug Power's recent moves are not solely driven by industry-wide trends.
Plug Power bulls found fresh reason for optimism with a project milestone announced this week. On May 20, the company disclosed that it had reached a final investment decision (FID) for its 30-megawatt Barrow Green Hydrogen project in Cumbria, UK. This milestone moves the project into the funding and execution phase. Plug Power will supply six 5-megawatt GenEco PEM electrolyzers to the site, which is expected to produce approximately 100 gigawatt-hours of green hydrogen annually for Kimberly-Clark's Barrow facility.
Crespo described the Barrow project as Plug Power's largest UK undertaking, now transitioning from award to execution. Kristian Høeg Madsen, co-head of hydrogen investments at Schroders Greencoat, commented that hydrogen is central to the next phase of the energy transition.
Nevertheless, the company's own filings outline significant risks. Achieving its targets will require lower costs, improved margins, a steady supply of hydrogen, manageable input costs, successful asset sales, and the realization of tax credits. The outlook also depends on financing availability, customer demand, and project timelines. Any slippage could jeopardize the fourth-quarter EBITDAS target and reignite concerns over cash burn.
As trading resumes on Friday, the key question is whether Plug Power shares can maintain their position above $4 following this week's bounce, or if selling pressure will emerge as volume increases. Traders are watching to see if the recovery holds or if profit-taking sets in. Management has pointed to the first Stream Data Centers asset deal, expected in June with a value of approximately $142 million, as the next major catalyst.
