Markets are off to a strong start this week as the S&P 500, Dow Jones Industrial Average, and Nasdaq are all rising higher. Investors are especially charged up about fuel cell specialist Plug Power (PLUG -1.96%) though. Besides a positive announcement from Plug's new partner Nikola (NKLA -5.05%), investors are clicking the buy button in response to an article from Barron's this weekend.
As of 11:14 a.m. ET, shares of Plug Power are up 7.8%.
Nikola reported today that it has received a letter of intent for an order of 100 heavy-duty Class 8 Tre hydrogen fuel cell electric vehicles from GP Joule. Investors are particularly interested in the announcement since Plug Power and Nikola inked a hydrogen supply agreement in December.
The order is signaling to investors that demand for hydrogen-powered vehicles remains high -- a dynamic that will benefit Plug Power as it continues to expand its hydrogen production infrastructure.
The other factor motivating investors today is a weekend article from Barron's reporting that DNB Asset Management increased its position in Plug Power. According to a regulatory filing, DNB, a leading Norwegian financial services group, bought 243,041 shares of Plug Power in the fourth quarter of 2022, resulting in a total position of 2,146,526 shares.
Those who follow Plug Power closely are likely unsurprised that shares are jumping higher to start the week. Between yesterday's article and the announcement from Nikola, hydrogen bulls are likely reinvigorated that good things are on the horizon.
Unfortunately, the vote of confidence from DNB and Nikola's announcement mean little in the context of Plug Power's history -- one that is filled with similarly optimistic news items that do little to improve the company's bottom line.