Recovering from a disappointing start to the week, Socket Power (NASDAQ: CAP) the stock is up today. With the company’s announcement of a potential new partner, investors are excited to acquire shares of the fuel cell specialist.
As of 1:52 p.m. ET, Plug Power shares were up 8.8%, down from their previous rise of 13.5%.
Investor optimism rises on possible Australia deal
Plug Power and Allied Green Ammonia, an Australian ammonia production company, are exploring the development of a hydrogen-to-ammonia production facility in the Northern Territory of Australia. If the project moves forward, Plug Power will provide up to 3 gigawatts of electrolyzer capacity.
Once the memorandum of understanding is signed, the two companies will collaborate on a design and engineering plan for the project, which is expected to be released in the coming weeks. The companies further expect a final investment decision to be made in the fourth quarter of 2025, with the possibility of Plug delivering electrolyzers from the first quarter of 2027.
Is it time to add Plug stocks to your portfolio?
The announcement of a potential new partnership in Australia may seem encouraging, but it is important to recognize that a protocol of agreement is not legally binding and it is quite possible that the project will never come to fruition. Additionally, Plug Power has long announced promising supply deals, but has never turned a profit.
With its long history of net losses, hydrogen-focused investors should wait until Plug proves it can find a way to make its hydrogen and fuel cell efforts lucrative before deciding to hit the buy button on Plug stock.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the securities mentioned. The Mad Motley has a disclosure policy.
Why Plug Power Stock Is Soaring Today was originally published by The Motley Fool
