Plug Power (PLUG -3.87%) stock went ballistic in June, surging 68.8% according to data provided by S&P Global Market Intelligence. A big electrolyzer deal, insider buying, and President Donald Trump's "Big, Beautiful Bill" helped the hydrogen stock log its best month so far in 2025, but can the stock go any higher?
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The trio behind Plug Power stock's stunning rally
After signing a 3 gigawatt (GW) electrolyzer agreement with Allied Green Ammonia in January for its factory in Australia, Plug Power bagged another deal on June for 2 GW electrolyzer capacity for Allied Green's $5.5 billion green chemical production facility in Uzbekistan.
Around the same time in June, Plug Power CFO Paul Middleton purchased 650,000 shares on the open market at an average price of $1.03 per share, topping his earlier purchase of 350,000 shares for $0.72 per share in May. Middleton called the additional investment a reflection of his "strong conviction in Plug's strategy and long-term value creation," adding that he sees meaningful upside in Plug Power as the company executes and gains traction.
Yet another deal and the CFO's bet sent the languishing hydrogen stock soaring 42% in just three trading days between June 9 and June 11. The stock bolted even higher toward the end of the month after the Senate voted for Trump's Big, Beautiful Bill with an advanced version that proposed to end clean hydrogen production tax credits for projects starting only after Dec. 31, 2027. Investors saw this as a huge win for the hydrogen industry since the previous bill wanted to ax tax credits by as early as the end of this year.
Read this before you buy Plug Power stock
Plug Power's partnership with Allied Green for 5 GW is monumental, but there's a catch. Plug Power doesn't expect a final investment decision (FID) before the fourth quarter of 2025, without which the deal holds little meaning. And, even if Plug Power secures an FID, it could still take a couple of years or more to deliver the first electrolyzer to Allied Green.
In between, Plug Power is struggling to keep its operations running since it's a loss-making company. In 2024, Plug Power reported a net loss of $2 billion and ended the year with just about $205 million in cash and cash equivalents. Plug Power has consistently sold shares to raise funds, which is one of the biggest reasons why the stock tanked over the past year or so.
In June, Plug Power even urged its shareholders to vote in favor of doubling the number of its authorized common stock, which is simply another means to raise money. By doing so, Plug Power can also avoid a reverse stock split, which could otherwise become unavoidable if the company wants to remain listed on the Nasdaq stock exchange.
In short, there are too many ifs and buts, and anyone betting on Plug Power stock now for fear of missing out could end up losing more than they desire.
