What happened
After Monday's bloodbath, shares of hydrogen fuel-cell specialist Plug Power (PLUG 6.28%) are on the rebound today, jumping 4.3% as of 12:05 p.m. ET. The broader market is up today, as well, but there are other reasons Plug Power stock is rising today, including a scoop that reveals part of Plug Power's growth plans.
So what
Plug Power shares sank yesterday alongside the market as fears of rising COVID-19 omicron variant cases gripped the market. To add salt to the wounds, President Joe Biden's Build Back Better Act, which earmarks $555 billion for renewable energy incentives, hit an unexpected hurdle when Sen. Joe Manchin rejected the bill this past weekend.
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Investors are returning to the markets today to take advantage of yesterday's drop in the prices of stocks like Plug Power. On Dec. 20, the U.S. Environmental Protection Agency (EPA) also finalized its most ambitious greenhouse-gas emission standards yet for electric vehicles through 2026.
Although Plug Power is primarily focused on materials-handling equipment markets and is expanding aggressively into green-hydrogen transportation, its ProGen fuel-cell engines are built for electric vehicles. Earlier this year, Plug Power formed a venture with French automaker Renault to develop, build, and sell fuel-cell light-duty commercial vehicles.
Meanwhile, American daily Times Union just reported that Plug Power, which is building a 350,000 square-foot fuel-cell factory in Bethlehem township, has filed documents with the town that reveal the company's employment level in the township could more than double in five years. Plug Power aims to use the facility to build GenDrive fuel cells for use in forklift trucks.
Now what
Plug Power is laser-focused on growth and has signed multiple deals in recent weeks, reflecting the growth potential for green hydrogen and fuel-cell technology. While Build Back Better can provide a strong impetus to stocks like Plug Power, the company is already growing fast enough to project annual sales worth $3 billion for 2025. And that's what investors bidding the stock higher today are focusing on.
