With the wider adoption of green hydrogen energy and Plug Power, Inc. (NASDAQ: PLUG) being one of the leaders in the hydrogen energy market, PLUG seems to be one of the frontrunners to benefit from the new trend. Earlier this week PLUG landed three electrolyzer deals for European green hydrogen projects which further shows Europe’s commitment to green hydrogen as a future energy source. After the news PLUG stock soared more than 15% and has the potential to continue running thanks to its short squeeze potential. With its Georgia plant set to become the largest green hydrogen plant in the world that utilizes electrolyzers and plans to open more plants this year, PLUG stock is shaping to be one of the best green energy stocks to buy this year.
PLUG Fundamentals
The news that PLUG closed three deals for European green hydrogen projects garnered a lot of interest from investors in the green energy stock. This news saw the stock jump more than 15% before settling. PLUG stock has the chance to run even more as the stock has a high short interest of 19.7% and a 100% utilization rate, which can result in a short squeeze as short sellers would be forced to cover their short positions.
In its Q1 2023 earnings call, PLUG announced that it reached record production of PEM Electrolyzer Stacks in the quarter and is on track to achieve the 100 MW per month goal in Q2. It also announced that the Georgia plant is expected to achieve full production by the end of June which will make it the largest green hydrogen play in the world that utilizes electrolyzers, which means that PLUG will see another increase in production in the second half of the year. It was also announced that PLUG has plans to commission more plants in New York and Louisiana in 2023, which indicates that PLUG expects a further increase in demand and the new plants will be made to cover the demand.
In the best-case scenario, PLUG expects to achieve $1.4 billion in revenue in 2023, an 80% increase from last year. The increase in revenue reflects the global shift to clean energy sources like green hydrogen energy. That means that as more countries try to eliminate fossil fuels and achieve 100% clean energy production in the future PLUG’s growth will continue.
Furthermore, PLUG is working to secure additional funding with the company in talks to secure a loan from the Department of Energy (DOE) and an Assets Based Loan (ABL), both PLUG are confident in securing later in the second half of the year. Earlier this year, the DOE announced a $1.5 billion plan to accelerate the widespread use of clean hydrogen. This news means a lot to PLUG as one of the big players in the clean hydrogen energy market. The U.S. wanting to accelerate the development and use of hydrogen energy means that the DOE may provide support to PLUG in the form of loans on more favorable terms in the future.
PLUG Financials
In its Q1 2023 report, PLUG’s assets decreased 10% YoY from $3.3 billion to $2.9 billion, and its cash and cash equivalents decreased 31% YoY from $690 million to $475 million. PLUG’s total liabilities saw a slight increase of 1.6% YoY from $1.704 billion to $1.732 billion.
Revenue also increased 50% YoY from $140 million to $210 million. Operating costs increased almost 36% from $103 million to $140 million, which contributed to the operating loss increase of nearly 50% YoY from $139 million to $209 million, which amounted to a net loss of $206 million – a 32% increase YoY.
Technical Analysis
PLUG stock’s trend is neutral with the stock trading in a sideways channel between $7.51 and $8.1. It is worth noting that following the news of the 3 European deals, PLUG broke its channel and entered another channel between $8.54 and $9.53.
Looking at the indicators the stock is trading above the 21, 50, and 200 MAs which are bullish indications. However, the RSI is overbought at 72 and the MACD is approaching a bearish crossover. It is worth mentioning that there are two gaps on the chart near $9.3 and $7.8 that may be filled in the future.
If the stock retests its support successfully it would be a sign that it entered the new channel which makes it likely that it will fill the gap near $9.3, however, if it drops to its previous channel then it would be more likely to fill the gap near $7.8
As for the fundamentals, PLUG stock just witnessed two catalysts landing three deals for European green hydrogen projects, and releasing its Q1 2023 earnings. It may also see a catalyst in the second half of the year if PLUG can secure additional funding either through ABL or the DOE. Since the RSI is overbought and needs to recalibrate, investors could wait for PLUG stock to consolidate first before buying ahead of the potential funding in the second half of the year.
PLUG Forecast
The global market is shifting to clean energy solutions and with this shift hydrogen energy demand is increasing. That puts PLUG in a great position for the future as it is one of the big players in the hydrogen energy market, as PLUG can look forward to support from the DOE due to the U.S. wanting to accelerate the development and use of hydrogen energy.
With plans to commission more plants in 2023 and landing three deals as a part of the European green hydrogen projects, PLUG is on track to reach at least $1.2 billion in revenue in 2023. The future seems exciting for PLUG, which is why PLUG stock is one to watch.
PLUG Fundamentals
The news that PLUG closed three deals for European green hydrogen projects garnered a lot of interest from investors in the green energy stock. This news saw the stock jump more than 15% before settling. PLUG stock has the chance to run even more as the stock has a high short interest of 19.7% and a 100% utilization rate, which can result in a short squeeze as short sellers would be forced to cover their short positions.
In its Q1 2023 earnings call, PLUG announced that it reached record production of PEM Electrolyzer Stacks in the quarter and is on track to achieve the 100 MW per month goal in Q2. It also announced that the Georgia plant is expected to achieve full production by the end of June which will make it the largest green hydrogen play in the world that utilizes electrolyzers, which means that PLUG will see another increase in production in the second half of the year. It was also announced that PLUG has plans to commission more plants in New York and Louisiana in 2023, which indicates that PLUG expects a further increase in demand and the new plants will be made to cover the demand.
In the best-case scenario, PLUG expects to achieve $1.4 billion in revenue in 2023, an 80% increase from last year. The increase in revenue reflects the global shift to clean energy sources like green hydrogen energy. That means that as more countries try to eliminate fossil fuels and achieve 100% clean energy production in the future PLUG’s growth will continue.
Furthermore, PLUG is working to secure additional funding with the company in talks to secure a loan from the Department of Energy (DOE) and an Assets Based Loan (ABL), both PLUG are confident in securing later in the second half of the year. Earlier this year, the DOE announced a $1.5 billion plan to accelerate the widespread use of clean hydrogen. This news means a lot to PLUG as one of the big players in the clean hydrogen energy market. The U.S. wanting to accelerate the development and use of hydrogen energy means that the DOE may provide support to PLUG in the form of loans on more favorable terms in the future.
PLUG Financials
In its Q1 2023 report, PLUG’s assets decreased 10% YoY from $3.3 billion to $2.9 billion, and its cash and cash equivalents decreased 31% YoY from $690 million to $475 million. PLUG’s total liabilities saw a slight increase of 1.6% YoY from $1.704 billion to $1.732 billion.
Revenue also increased 50% YoY from $140 million to $210 million. Operating costs increased almost 36% from $103 million to $140 million, which contributed to the operating loss increase of nearly 50% YoY from $139 million to $209 million, which amounted to a net loss of $206 million – a 32% increase YoY.
Technical Analysis
PLUG stock’s trend is neutral with the stock trading in a sideways channel between $7.51 and $8.1. It is worth noting that following the news of the 3 European deals, PLUG broke its channel and entered another channel between $8.54 and $9.53.
Looking at the indicators the stock is trading above the 21, 50, and 200 MAs which are bullish indications. However, the RSI is overbought at 72 and the MACD is approaching a bearish crossover. It is worth mentioning that there are two gaps on the chart near $9.3 and $7.8 that may be filled in the future.
If the stock retests its support successfully it would be a sign that it entered the new channel which makes it likely that it will fill the gap near $9.3, however, if it drops to its previous channel then it would be more likely to fill the gap near $7.8
As for the fundamentals, PLUG stock just witnessed two catalysts landing three deals for European green hydrogen projects, and releasing its Q1 2023 earnings. It may also see a catalyst in the second half of the year if PLUG can secure additional funding either through ABL or the DOE. Since the RSI is overbought and needs to recalibrate, investors could wait for PLUG stock to consolidate first before buying ahead of the potential funding in the second half of the year.
PLUG Forecast
The global market is shifting to clean energy solutions and with this shift hydrogen energy demand is increasing. That puts PLUG in a great position for the future as it is one of the big players in the hydrogen energy market, as PLUG can look forward to support from the DOE due to the U.S. wanting to accelerate the development and use of hydrogen energy.
With plans to commission more plants in 2023 and landing three deals as a part of the European green hydrogen projects, PLUG is on track to reach at least $1.2 billion in revenue in 2023. The future seems exciting for PLUG, which is why PLUG stock is one to watch.