The Plug Power share price has remained stable in recent weeks, as investors have reacted positively to its financial results. PLUG was a leading player in the industry of hydrogen energy, and its stock price on Wednesday rose by 35%.
Investors expect revenue to grow this year, so the recovery could continue for a while.
Analysts predict that Plug Power revenues will continue to grow
Plug Power is doing very well, despite challenges that continue to face the hydrogen industry. According to the most recent figures, its revenues grew by almost 13% in one year. They reached $710 millions. The company’s revenue for the fourth quarter increased by 17.6%, to $225 millions.
The growth in this segment was largely due to the continued demand for power purchase agreements in the United States, as well as other countries. Power purchase agreements accounted for $107 million, up from $77 million in the same time period last year.
In this period, the other business segments continued to do well. Fuel delivered to customers, for example, grew to $133 millions from $97.8million. Fuel cell services accounted for over $94 millions, a significant increase from the $52 million earned in 2024.
However, the main problem is its largest equipment sales, which have been declining. The revenue fell to $371 from $390 million the year before. It is crucial because the segment will make $711 millions in 2023.
Wall Street analysts believe that business growth will continue in the future, thanks to the increasing industrial demand. This includes companies such as Walmart, Amazon and DHL.
Its revenue is expected to increase by 6.2% this year, to $142,000,000. The annual number will also rise by 13.3% to $802,000,000. The company will make $951 millions this year.
Also, Plug Power is expected to see its losses continue to shrink. Analysts expect the company to make a profit per share this year of 30 cents and 22 cents in 2019.
Even with these positive developments, there is still a major risk that the share price will be diluted as the company must raise capital over the next few months. The company ended its last quarter with more than $308 million of cash, and another $186 million restricted cash.
Plug Power Stock Price Technical Analysis
Source: TradingView
Charts of the daily timeframe show that the PLUG has recovered in recent days. It moved from a February low price of $1.72 to $2.32. The stock has formed a pattern of a double bottom at $1.72, and the neckline is at $2.64. This was its highest point in January.
Stocks are still trading between Fibonacci levels of 50% and 61.8%. The stock has moved up above the 50 day Exponential Moving average (EMA).
The stock is likely to continue increasing in the next few weeks and could reach the neckline of $2.65. If the stock moves above this level, it could lead to further gains. It may even reach the psychological $3.10 level, about 35 percent above its current value.
The reasons why this post Plug Power share could rise by 35% in the near future may change as new information unfolds
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