What's Going On With Plug Power Stock?

Shares of Plug Power Inc PLUG are trading sharply higher Wednesday. The rebound follows a sell-off on Tuesday driven by widespread anxiety within the renewable energy sector.

What To Know: The market jitters were ignited by the unveiling of a draft tax bill in the U.S. Senate Finance Committee. The proposed legislation seeks to significantly curtail clean energy incentives by accelerating the phase-out of tax credits established under the Inflation Reduction Act of 2022.

According to the draft, tax credits for solar and wind energy projects would be eliminated by 2028, with reductions commencing as early as 2026.

While Plug Power is a specialist in hydrogen fuel cell technology, its fortunes are often closely tied to the broader sentiment surrounding the green energy industry. The threat of reduced government subsidies and a less favorable financial landscape for clean energy infrastructure sent a ripple effect across the sector, hitting stocks like Plug Power.

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Tuesday’s decline reflected investor concerns over potentially higher operational costs and a damper on investment prospects for the clean energy complex. The volatility meanwhile highlights the sensitivity of renewable energy stocks to policy shifts and legislative proposals emanating from Washington.

Price Action: According to data from Benzinga Pro, PLUG shares are trading higher by 7.3% to $1.17 Wednesday morning.

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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.

In the case of Plug Power, which is trading at $1.17 as of publishing time, $100 would buy you 85.5 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.

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