Plug Power Inc (PLUG)

[B_B!]

Plug Power has good news, but may also be caught up in meme mania
By Emily Bary 1 hour ago

Plug Power gave investors a positive update Tuesday on its financial trajectory, as it announced receipt of a $1.66 billion conditional commitment for a loan guarantee through the Department of Energy.

Its shares are rising 45% in Tuesday morning trading. "We believe lower cash burn and inventory drawdowns in 2024, combined with the disbursement of the DOE loan, will likely abate the majority of concerns associated with liquidity and scaling," Evercore ISI analyst James West wrote in a note to clients.

But the announcement wasn't entirely a surprise given that Plug Power said just last week that it was continuing to "advance the pending loan guarantee." Given the recent revival of the meme-stock trade and momentum in heavily shorted names, it's possible part of Plug Power's Tuesday rally reflects that dynamic.

Short interest represents more than 30% of the float for Plug Power, according to FactSet data. That's more than for AMC and GameStop, two high-profile meme plays.

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