Plug Power surges on hydrogen supply deal with Amazon

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Plug Power($NASDAQ:PLUG) Inc surged 14.4% in pre-market trading on Thursday after announcing a deal to supply liquid green hydrogen to Amazon starting in 2025. As part of the deal, Plug will grant Amazon a warrant to acquire up to 16 million common shares, with an exercise price for the first 9 million warrant shares of approximately $22.98 per share. Amazon would vest the warrant in full if it spends $2.1 billion over the seven-year term of the warrant across Plug products, including electrolyzers, fuel cell solutions and green hydrogen. The deal is a major win for Plug Power, which has been working to commercialize its hydrogen technology. Do you think this will affect PLUG POWER’s market and earnings in the long term? Yes, the deal is likely to have a positive impact on Plug Power’s market and earnings in the long term. The company has been working to commercialize its hydrogen technology for years, and the Amazon deal is a validation of that work. In addition, the deal is likely to lead to increased demand for Plug Power’s products, which should boost revenues and earnings.

Share Price

The deal is a vote of confidence in Plug Power’s technology, which uses hydrogen to power electric vehicles. It also signals Amazon’s commitment to reducing its carbon footprint and becoming more environmentally friendly. Plug Power is the leading provider of hydrogen fuel cells for forklifts and other industrial vehicles. The company has been working with Amazon for several years, and this latest deal is the largest yet. The news sent PLUG stock soaring in early trading on Thursday. This is up from the stock’s previous close of $27.50. investors are betting that the company’s technology will continue to gain traction in the coming years. With more and more businesses looking to reduce their carbon footprint, Plug Power is well-positioned to benefit.

VI Analysis

Company’s fundamentals are important to reflect its long term potential. However, analyzing all the data can be difficult and time-consuming. The VI app makes it easy by providing a comprehensive analysis of the company’s financial and business aspects. According to the VI Risk Rating, PLUG POWER is a medium risk investment. This means that there are potential risks in both the financial and business areas. However, the company has strong fundamentals that suggest it has the potential to overcome these risks. You can check out what are the business and financial areas presenting potential risks in our website.

Summary

Under the terms of the deal, Plug Power will install, own and operate a GenKey hydrogen fueling station at the Amazon facility. Plug Power said it has also signed a fuel purchase agreement with Amazon.