Plug Power’s (NASDAQ: PLUG) stock price surged 28.8% as of 2:45 p.m. ET on Monday after the company released better-than-anticipated preliminary first-quarter results and announced a new funding deal through Yorkville Advisors.
The hydrogen fuel cell specialist reported sales guidance of $130 million to $134 million for the first quarter, exceeding analyst estimates. For the second quarter, Plug Power expects sales between $140 million and $180 million, representing a 11.6% increase over the previous quarter’s performance.
The company also announced plans to achieve $200 million in annual cost reductions this year, aiming to improve margins. A new credit agreement with Yorkville Advisors valued at $525 million is expected to provide added flexibility for operations and refinancing.
With its strong Q1 results and optimistic guidance, Plug Power’s stock price has rallied significantly, making it an attractive option for investors considering a $1,000 investment. However, it’s worth noting that The Motley Fool’s Stock Advisor team did not recommend Plug Power as one of the top 10 stocks to buy right now, citing other options with potentially better returns.
Source: https://www.nasdaq.com/articles/why-plug-power-stock-skyrocketing-today