Why Shares of Plug Power Popped 21% in September
Reversing course from an August in which they dipped nearly 2% -- a rare monthly decline in 2019 -- shares of Plug Power (NASDAQ: PLUG), a global leader in fuel cell solutions, climbed more than 21% last month, according to data from S&P Global Market Intelligence. While investors responded to news that the company is expanding its operations through the opening of a new facility in upstate New York, the greatest source of excitement was management's optimistic five-year outlook.
In an early September announcement, Plug Power revealed the opening of a new facility that complements the February opening of a separate new manufacturing facility. In addition to providing additional capabilities for research and development, "the new labs come equipped with cutting-edge technology and ample resources supporting Plug Power's ongoing efforts to reduce costs, improve durability, and develop new materials for its proprietary membrane electrode assembly (MEAs) technology," according to the company's press release. Considering the company has failed to reach sustained profitability, it's understandable why the suggestion of reducing costs could spur investors to pick up shares.
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