Plug Power: Conditional DOE Loan Guarantee Meets Meme Stock Frenzy – Hold


  • On Tuesday, shares of Plug Power got a shot in the arm as the company finally managed to secure a much-touted conditional loan guarantee by the Department of Energy.
  • Investors shouldn’t get carried away by Tuesday’s news, as the loan is not likely to be funded anytime soon.
  • Last week, PLUG reported another set of disappointing quarterly results, with both the company’s top and bottom lines missing consensus expectations by a wide margin.
  • The company’s service, fueling, and leasing segments showed improvement. In addition, cash usage was down significantly.
  • Given market participants’ increased risk appetite and considering the renewed meme stock frenzy, Plug Power should have no problem selling sufficient amounts of shares into the open market to finance its operations for at least the next couple of quarters. Consequently, I am reiterating my “Hold” rating on the shares.



I have covered Plug Power Inc. (PLUG) previously, so investors should view this as an update to my earlier articles on the company.

On Tuesday, shares of struggling fuel cell systems, electrolyzer solutions, and green hydrogen provider Plug Power Inc. or “Plug Power” got a

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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