Plug Power stock gets a Bloom Energy boost: here’s why it may double

Plug Power stock price jumped by over 14% on Thurday, paring back some of the losses made in the past two weeks. It jumped to $3.78, a few points below the year-to-date high of $4.10. This rally happened as Bloom Energy boosted sentiment in the industry.

Plug Power stock jumped as Bloom surged

The main reason behind the rent Plug Power stock jump is that Bloom Energy has become one of the best-performing companies in Wall Street this year. Bloom jumped to a record high of $318 on Thursday, bringing its 12-month gains to 1,590%.

The stock jumped sharply after the company inked a major deal with Nebius Group. This deal will see it deploy its on-site energy equipment in key Nebius data centers. It will be worth over $2.6 billion in the near term. This deal came a few weeks after Bloom Energy inked a deal with Oracle.

Plug Power stock is also rising ahead of the upcoming SB Energy IPO that will happen soon. SB Energy is a company backed by Softbank that supplies energy to data centers in the US and other countries. It is part of Stargate, the project being led by Softbank, OpenAI, and Oracle.

These events have led to a jump in demand for companies in the alternative power industry. Plug Power focuses on the hydrogen power technology, which is being used in the transport and materials industry. It counts Walmart as one of its top customers and partners.

The company has been working to become a major player in the data center industry. In its website, it notes that the GenSure fuel cells will be able to provide scalable, zero-emission, and reliable backup power to data centers.

Plug Power UK win as turnaround continues

Meanwhile, Plug Power stock also jumped after the company received a major win in the UK. The 30-megawatt Barrow Green Hydrogen project in the UK has reached its final investment decision. Green Hydrogen Company, a joint venture by Schroders Greencoat and Carlton Power, is implementing this project.

Plug Power will be a major part of the project, supplying electrolyzers that are useful in the hydrogen energy.

This deal is coming at a time when the company’s business is experiencing a strong turnaround. The most recent results showed that its revenue rose by 22% to $163 million, with material handling and electrolyzers leading the charge. It also boosted its gross margins as part of its cost optimization process. 

PLUG stock price technical analysis

As we have written before, Plug Power shares have formed some bullish patterns that point to more gains in the near term. The most important one is the cup-and-handle pattern whose upper side is at $4.58. Its depth is approximately 63%.

It also formed a golden cross pattern as the 50-day and 200-day exponential moving averages crossed each other. Also, it has remained above the Supertrend indicator.

Therefore, the stock will likely continue rising, with the initial target being at $4.58. A move above that level will point to more gains, potentially to $7.50, which is up by nearly 100% from the current level. This target is established by measuring the cup’s depth distance from its upper side.