The Dow Jones Industrial Average and S&P 500 are inching slightly higher today, but shares of hydrogen specialist Plug Power (PLUG -3.57%) are rocketing convincingly higher. News about the company's extension of a deal with a hydrogen partner is motivating investors to click the buy button on Plug stock.
As of 10:53 a.m. ET, shares of Plug Power had soared 19.4%.
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Details of the deal remain scant
Plug Power and its unnamed partner -- identified as a "a leading U.S.-based industrial gas company and longtime hydrogen partner -- announced the extension of a strategic relationship through 2030. The companies didn't elaborate on the specifics of the collaboration, but Plug notes that the partner will supply it with liquid hydrogen at a reduced cost and work with it to improve efficiencies in the hydrogen network.
In the press release announcing the deal, Plug suggests that the deal was largely made possible by the passage of the "big beautiful bill" legislation. Additionally, Plug notes that the "legislation will provide strong tailwinds in the near and mid-term for additional market growth."
Should you follow the market and power your portfolio with Plug stock?
It's fairly common for Plug to announce new deals regarding its hydrogen business. What's not common, however, is for the company to provide concrete insight into how the deal will benefit the company and its financial condition. For a company that perennially fails to post a profit, this lack of insight is disappointing and compromises the excitement about said deals.
While news that the recently passed legislation helped to make this deal a possibility is encouraging, prospective Plug investors would be better advised to wait for the company's upcoming quarterly reports to see if there are improvements in its financials.
