Shares of Plug Power (PLUG 1.68%) are jumping on Monday, up 7.3% in afternoon trading. The move comes as the S&P 500 and Nasdaq Composite were up 0.5% and 0.7%, respectively.
Plug Power, which develops hydrogen-based fuel cell technology, is seeing its stock move after a positive industry research report was released Friday.
Big growth could be coming for the market
The firm BCC Research released its latest report on the global fuel cell market, showing a projected compound annual growth rate (CAGR) of 21.2% through 2029. The report sees three main factors driving the growth: increasing need for uninterrupted power supply by critical industries like healthcare, a growing desire to reduce carbon emissions, and a shift to green sources for the maritime industry.
While research reports such as these should never be taken as fact, their rosy outlook was enough to help boost Plug Power's stock.
Image source: Getty Images.
Plug is still a risky bet
The projected growth in the overall industry is encouraging, but investors should know that Plug is seriously struggling. The company's sales stagnated and declined for some time, with the notable exception of last quarter, and it is still burning cash and operating at a significant loss -- more than $2 billion last year.
There has been some positive news as of late, including a renegotiated deal that will see the company reduce its fuel costs. For investors with a high risk tolerance, Plug could be a speculative turnaround play, but I would caution most investors to stay away from Plug Power.
