Rebounding from its disastrous performance last week, shares of Plug Power (NASDAQ: PLUG) are racing higher straight out of the gate this morning. For those speculating that the company has announced something promising — think again. There hasn’t been any news to explain the stock’s move. Instead, investors are simply buying in advance of the company’s business update that’s scheduled for tomorrow.
As of 10:09 a.m. ET, shares of Plug Power are up 12.5%.
Charged up about the possibility of hearing something positive
Plug Power is hosting an annual business update tomorrow, and investors are speculating that the company will have some encouraging commentary about the company’s future. Furthermore, investors are presuming that the stock will rise after the business announcement, thus their interest in picking up shares now before they potentially pop tomorrow.
With the company set to receive a significant influx of cash — up to $1 billion — through the issuing of new shares, there is no longer a concern that the company will struggle to keep its lights on, a consideration that management raised when it reported third-quarter 2023 financial results. Tomorrow, therefore, investors will likely hear about management’s plan to better navigate the headwinds that it has recently faced — maybe even provide a rosier outlook than management’s commentary from the Q3 2023 earnings report stating its belief that it “expects to generate operating losses for the foreseeable future.”
What should potential Plug Power investors do now?
Sure, shares have popped, but hydrogen investors who have Plug Power on their watch lists shouldn’t take the stock’s movement today as any indication that things are looking up for the beaten-down fuel cell stock. It’ll be worth noting what management says tomorrow, but the company’s fundamentals need to improve considerably before smart investors consider clicking the buy button.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Shares of Plug Power Are Soaring Today was originally published by The Motley Fool