Plug Power Explained: Introduction to PLUG Stock Trading
Date Modified: 20/10/2024
Plug Power Inc. is at the forefront of developing the first environmentally friendly hydrogen ecosystem in the clean energy sector.
This article explores Plug Power’s products and services, key developments, and how to trade its rising and falling PLUG stock prices.
Main Points:
- Plug Power Inc. is a US-based company at the forefront of green hydrogen and fuel cell technology.
- Plug Power is headquartered in New York and has a robust presence across America, Asia and Europe.
- Plug Power (NASDAQ: PLUG) was founded in 1997 and became a publicly-traded company on the NASDAQ stock exchange in 1999.
- Traders can speculate on Plug Power’s stock prices through CFDs on platforms like Plus500.
What Is Plug Power Inc.?
Plug Power Inc. is a leading American developer of green hydrogen and fuel cell solutions.
The company specialises in designing and manufacturing hydrogen fuel cell systems as alternatives to traditional batteries for various equipment, including electric vehicles (EVs) and stationary power systems.
Moreover, Plug Power is building a comprehensive green hydrogen ecosystem encompassing the production, storage, distribution, and utilisation of renewable energy sources.
Plug Power was formed in 1997 by merging two distinct energy companies, DTE Energy (a utility company) and Mechanical Technology Inc. (a service company). The company is headquartered in Latham, New York, with a diverse portfolio of subsidiaries and locations across the United States, Canada, and the Netherlands. These subsidiaries support various aspects of its hydrogen and fuel cell technology solutions, from manufacturing and distribution to financial services and renewable energy projects.
Plug Power’s Portfolio of Products
Plug Power Inc. has a portfolio of products sold through direct sales, original equipment manufacturers (OEMs), and dealer networks. These products are as follows:
- GenDrive: A proton exchange membrane system utilising hydrogen fuel designed to power logistics and warehouses of electric vehicles, such as forklifts.
- GenSure: This is a stationary fuel cell solution that provides modular PEM fuel cell power. It is used for backup and grid-support power needs in sectors like telecommunications, transportation, and utilities.
- ProGen: This encompasses fuel cell stack and engine technology used in mobile and stationary fuel cell systems, providing a clean alternative to traditional combustion engines.
- GenFuel: A comprehensive system for hydrogen fueling that includes delivery, generation, storage, and dispensing of liquid hydrogen.
- GenCare: An Internet of Things (IoT)-based maintenance and service program for the company's various fuel cell systems, ensuring they operate efficiently and reliably.
- Other Products: The other products and services offered by Plug Power Inc. include electrolysers, liquefaction systems, cryogenic equipment, and liquid hydrogen.
Plug Power’s Mission and Future Plans
Plug Power aims to build a clean and efficient hydrogen economy, has lower carbon footprints and is environmentally friendly.
Plug will distribute its green hydrogen products directly to customers and through joint ventures in diverse end markets, such as logistics and warehouse operations, electric vehicles, energy production, and manufacturing processes.
The company also plans to strategically establish a series of green hydrogen fueling stations along major transportation routes across the US, Canada and Europe. As of 2024, Plug has approximately 70,000 functioning fuel cell systems and over 250 fueling stations. Companies like Toyota (TM) and Hyundai are also integrating fuel cell technologies in the transportation sector.
Due to Plug Power's expansion and the critical need to sustain the operations of its fuel cell systems, the company’s demand for liquid hydrogen was the highest in the world in 2024.
Key Developments and Partnerships of Plug Power Inc.
- In 2012, Walmart (WMT) began partnering with Plug Power Inc. to incorporate Plug Power’s fuel cells to power forklifts in distribution centres.
- In February 2017, Plug Power commenced the delivery of its ProGen fuel cell engines. During the same period, the company forged strategic partnerships with Amazon (AMZN) and the US Postal Service to integrate Plug Power's hydrogen fuel cell technology into their forklift fleets.
- In January 2021, Plug Power entered into a joint venture with South Korean conglomerate SK Group to target the Asian market, including China. SK Group made a strategic investment of $1.5 billion, acquiring approximately a 10% ownership stake in Plug Power Inc.
- In June 2021, Plug Power formed another joint venture with the French automobile company Groupe Renault (RNO.PA) to penetrate the European market.
- In 2022, Plug Power partnered with Olin Corporation to produce green hydrogen at a 15-ton-per-day plant in North America.
Additionally, in the same year, Plug Power joined forces with Airbus (AIR.DE) to explore the application of green hydrogen in decarbonising air travel within the aerospace sector.
Plug Power Inc. Stock Market Performance
Following a reverse stock-split in October 1999 (during the dot-com bubble), Plug Power went public on the NASDAQ with an initial public offering (IPO) priced at $150 per share. The stock soared to an all-time high of $1,498 on March 10, 2000, but crashed at the dot-com bubble bursts. Plug Power’s stock declined 19.83% in 2023 and traded at about $3 in August 2024. Within this same period in 2024, Plug Power Inc. had a market capitalisation of $1.77 billion, an outstanding shares of 821.3 million, a public float of $754.29 million and a negative earnings per share (EPS) of $-2.389.
Factors Affecting Plug Power’s Stock Price
- High operating cost: This highlights Plug Power's financial instability and raises doubts about the company's ability to sustain operations long-term.
- Share Dilution: Plug Power raises capital through secondary offerings, which dilute existing shares, leading to stock price decline.
- In-house hydrogen production: The company is increasing its in-house hydrogen production capacity to reduce dependence on external suppliers and improve its gross margins.
- Demand: An increase or decrease in demand for hydrogen fuel cells can affect the profitability of Plug Power, and consequently its stock price.
- Economic Factors: Changes in interest rates, inflation, and overall economic outlook can influence Plug Power share prices.
How to Trade Plug Power Inc. Share CFDs
Plug Power Inc. is represented by the ticker symbol ‘PLUG’ on the NASDAQ stock exchange and the Plus500 CFD trading platform.
Traders can engage in buying and selling Plug Power stock without owning the actual shares by utilising Contracts for Difference (CFDs) through a CFD trading account with CFD providers like Plus500.
By taking a long position, traders anticipate a rise in PLUG stock's price, while a short position indicates expectations of a PLUG price decline. Gains or losses are realised based on the difference between the opening and closing prices of the CFD positions. It is also important to note that CFDs are leveraged products. While leverage can amplify potential profits, it equally magnifies potential losses.
Trading Hours for Plug Power (PLUG) Share CFDs
On the Plus500 trading platform, traders can monitor the real-time price movements of Plug Power (PLUG) shares and trade them from Monday 3:30 PM to Friday 10:00 PM CET.
Please note that trading platform hours may vary depending on the individual operator.
Steps to Buy and Sell Plug Power Share CFDs with Plus500
To trade Plug Power stock with Plus500, follow these steps:
- Create a real or demo account to access a range of advanced trading tools.
- Utilise the platform's search function to locate Plug Power shares or explore the available instrument options.
- Conduct a detailed analysis of Plug Power's market performance using technical analysis and fundamental methods.
- Determine the appropriate trade size and implement robust risk management practices.
- Execute a buy or sell order based on market assessment.
- Actively monitor the trade's performance and make necessary adjustments.
Conclusion
The role of Plug Power Inc. in facilitating hydrogen and fuel cell technology has positioned it as a potential focal point for traders and investors seeking exposure to the renewable energy market. When evaluating fundamental factors affecting Plug Power shares, key considerations include its operational costs, gross margins, penetration into new markets, demand for hydrogen fuel cell systems, and inflation in energy prices.
If you are interested in Plug Power shares' rising and falling prices, try trading Plug Power CFD with Plus500.
FAQs
As of August 2024, Plug Power does not pay dividends to shareholders. This might change later in the future.
Plug Power Inc. has approximately 3,870 employees (as of August 2024).
Plug Power Inc. competes with Ballard Power Systems (BLPD), SFC Energy AG, and FuelCell Energy (FCEL).
Plug Power operates primarily in the renewable industry and is part of the broader energy sector.
Plug Power's largest customers are Amazon and Walmart. Plug Power provides liquid green hydrogen for their forklifts.
Learn More About Plug Power
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