Shares of growth and technology companies are leading the market higher today, but alternative energy companies Plug power (Plug 6.32%) Even surpassing the tech-heavy ones Nasdaq Composite While the Nasdaq rose 1.1% as of 12:45 p.m. ET, Plug Power stocks were up 6%.
Investors have been feeling good about growth stocks over the past few days as they expect inflation data to move in the right direction, meaning the Federal Reserve will slow interest rate hikes.
Plug share’s outsized gains today come from another tailwind, however. The company announced a deal to sell its equipment to a Canadian competitor. Supporting a competitor may not sound like a good business decision, but it’s definitely in Plug Power’s best interest as well.
Plug Management said it expects revenue of about $1.4 billion in 2023, representing about 65% year-over-year growth. But it expects it to reach $5 billion by 2026. A large part of that expected growth is expected to come from growing demand for green hydrogen. Plug is investing in facilities across the United States to increase its future hydrogen production capacity.
A new order for two hydrogen liquefiers is for a Canadian energy company TC Energy. These systems will have the capacity to produce hydrogen at a rate of 30 tonnes per day (TPD). But it makes sense for Plug Power to help other energy companies meet their hydrogen production goals.
Adding the ability to support a transition to the use of hydrogen as a fuel will ultimately help plug power succeed Another step toward more infrastructure to support a hydrogen economy is what investors are seeing in the deal today.
Howard Smith has no position in any of the stocks mentioned. Motley Fool has no position in any of the stocks mentioned. Motley Fool has a revealing policy.