What’s the Meme-ing of Plug Power’s Winning Streak?

When “hydrogen” and “explode” appear in the same sentence, it usually spells disaster. This time, it spells breakthrough.

Shares of Plug Power, a hydrogen tech provider, have exploded in the past week, climbing roughly 50% through the past five trading sessions (though its 10-day streak finally snapped on Tuesday). Given the company’s not-so-impressive history, what’s with the runup?

What Do You Meme?

When we say not-so-impressive, we’re actually being kind. Case in point: Plug Power has not reported an annual profit since Y2K. Last year, it posted a $2.4 billion loss. This year, it’s on track to improve, if ever so slightly, that shortfall to a $677 million loss, according to FactSet data reported by Barron’s. Investors “see [hydrogen] technology having a role to play for data centers and power demand needs,” TD Securities analyst Jeff Osborne told MarketWatch, and are bullish on the sector as a result. On the other hand, Plug Power has announced new big clients since it began running with the bulls earlier this month, and its next earnings report isn’t until we’re knee-deep in Scorpio season. 

That can only mean one thing. Or should we say, meme one thing:

• Just as noteworthy as Plug Power’s rapid share price rise? The fact that roughly 40% of its shares available for trading have been sold short — that’s way above an average 3% short rate on companies in the S&P 500, according to FactSet, and makes it ripe for a so-called short-squeeze.
• And indeed, chatter on the infamous meme stock forum r/WallStreetBets so far this week confirms that the stock has once again caught the eye of the day-trading meme community, with one poster claiming to have bought $29,000 worth of shares at $2.65 each. 

Over the Hedge: Adding fuel to the meme stock fire: Hedge fund Heights Capital Management, which Plug Power disclosures on Monday revealed may soon resell 185 million Plug Power shares, worth some $305 million. That could explain some of the recent excitement, though, again, Plug Power has been rising for days. Still, the company is far from its glory days: In 2021, amid both meme stock and green tech mania, its shares peaked at $75. Once a meme stock, always a meme stock.