Plug Power (PLUG) Stock Continues Its Run For The Top

Plug Power PLUG Stock News

Plug Power Inc (NASDAQ: PLUG) is running for the top for the second consecutive trading session this morning. The gains started after the company announced that it made two key acquisitions and increased its guidance with regard to long-term revenue growth. Here’s what’s going on:

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PLUG Stock Continues Up As It Continues To Corner The Market

Yesterday, Plug Power announced that it acquired United Hydrogen Group and ELX. As a result of the acquisitions, the company said that it now expects for 2024 revenues to come in at $1.2 billion. Previous guidance suggested that revenue in 2024 would come in at $1 billion.

Moreover, PLUG said that it expects to grow operating income to $210 million by the year 2024. That’s up from previous projections of $170 million.

The growth in expectations has to do with the strong positioning within their respective markets held by the two acquired companies.

First and foremost, United Hydrogen Group produces 6.4 tons of liquid hydrogen on a daily basis. The company is also in the process of expanding this production to 10 tons daily.

On the other side of the coin, Gainer ELX is the developer behind one of the world’s largest electrolysis hydrogen generators as well as other tech that can be used for on-site refueling of hydrogen fuel cars.

Importantly, PLUG said that by the year 2024, consumers will be using 100 tons of hydrogen per day. It’s also expected that about 50% of this hydrogen will be green hydrogen. Of course, that bodes well for the largest green hydrogen player on the field.

In a statement, Andy Marsh, CEO at PLUG, had the following to offer:

Plug Power is working to build the modern clean hydrogen economy. Every decision we make is with an eye to the future, not the past. This closely aligns with the efforts that companies like United Hydrogen and Giner ELX have made to secure broad participation in the hydrogen economy, and to achieve the objectives of a clean environment and reduced dependence on foreign oil. We welcome these organizations into the Plug Power family where, as a team, we can accelerate the adoption of low carbon and zero carbon hydrogen on a global scale.

Why This Is Such A Big Deal

Plug Power is hands down, the leader in green hydrogen. As the company continues to grow, it is acquiring smaller players that offering tremendous long run value, which is the same type of activity that we see from most companies at its stage that grow to be massive conglomerates.

At the end of the day, PLUG is cornering the market and should this work continue, the long run prospects have the potential to be massive. Of course, this is a stock that should be on your watchlist.

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