A major characteristic of penny stocks is their extreme volatility. Fortunes can be made in a matter of weeks with these stocks. But penny stocks can also make fortunes vanish just as quickly.
Right now, there's one popular multibillion-dollar business that is trading like a penny stock, even though its share price is above the $1 mark.
NASDAQ: PLUG
Key Data Points
Plug Power is quickly becoming a penny stock
Analysts don't know what to make of Plug Power (PLUG +1.77%) stock. Some believe huge upside is on the way. Others think shares will fall by more than 50% in 2026. Put simply, predictions are all over the place for this company.
Part of this has to do with Plug Power's business model. The company designs and sells hydrogen fuel systems, mainly for industrial use cases. While hydrogen is a promising clean fuel source, the economics simply aren't there yet. Predicting the scale and pace of Plug Power's growth, therefore, hinges on hydrogen's ability to become economically viable.
Image source: Getty Images.
Plug Power's share price is almost in penny stock territory. This week, shares fell below $2. With continued losses and share dilution, falling below the $1 mark could be next.
To be sure, PLUG stock is often capable of big runs -- a feat that many penny stocks consistently manage. This year alone, shares rose by almost 400% at one point, only to give up nearly all the gains over the months that followed.
Plug Power stock is great for very aggressive investors and those willing to treat a potential investment as a lottery ticket. But most long-term investors should stay clear.
