Why Plug Power Stock Is Seeing Blue Skies

Zinger Key Points
  • Plug Power shares are trading higher by 5.6% during Thursday's session.
  • Shares of EV-related stocks are trading higher following recent CPI Data.

Plug Power Inc PLUG shares are trading higher by 5.6% to $2.84 during Thursday’s session. Shares of EV-related stocks are trading higher following recent CPI Data. The Department of Energy also announced a $1.7 billion to convert 11 shuttered or at-risk auto facilities to manufacture electric vehicles and their supply chain.

The lower-than-expected inflation report increases the likelihood of the Federal Reserve cutting interest rates sooner rather than later. Lower interest rates generally reduce the cost of borrowing for companies, which can be particularly beneficial for capital-intensive industries like clean energy.

For Plug Power, this means potentially lower financing costs for expansion, research and development and other operational needs.

Lower inflation and the anticipation of rate cuts often lead to a more favorable investment climate for growth stocks, including those in the clean energy sector. Investors may see Plug Power as a more attractive investment due to its growth potential in a lower-rate environment.

Read Also: Tesla To Delay Robotaxi Event By 2 Months, Stock Slides

How To Buy PLUG Stock

By now you're likely curious about how to participate in the market for Plug Power – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Plug Power, which is trading at $2.86 as of publishing time, $100 would buy you 34.97 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, PLUG has a 52-week high of $13.44 and a 52-week low of $2.21.

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