Why Plug Power Stock Slumped by Double Digits in January
Deals aren't enough to convince investors about the hydrogen company's future.
Plug Power (NASDAQ: PLUG) stock's disastrous performance from 2024 is continuing into 2025. After plunging by 53% last year, shares of the hydrogen fuel cell maker slumped by another 12.7% in January, according to data provided by S&P Global Market Intelligence.
From a business standpoint, January was a huge month for Plug Power as it struck a "monumental" deal and closed a much-needed loan agreement with the Department of Energy. Some recent events, however, have spooked investors with regard to the hydrogen stock.
In mid-January, Plug Power announced a deal to supply 3 gigawatts (GW) of electrolyzer capacity to Australian company Allied Green Ammonia to power a solar plant that will produce green ammonia. It's a huge deal given the electrolyzer capacity, and important too, considering that Plug Power is banking heavily on electrolyzers to drive its revenue growth in the coming years.
