Why Plug Power Stock Popped 10% Tuesday Morning

Group 1 - Plug Power's stock initially surged over 10% due to predictions of a $1.7 billion loan approval from the Department of Energy by Morgan Stanley [1][2] - The loan approval is anticipated to occur before President Trump's inauguration to mitigate the risk of potential claw-back [1] - Despite the positive news regarding the loan, Morgan Stanley maintains an "underweight" rating on Plug Power, with a target price of$1.75 per share [2] Group 2 - Plug Power has experienced significant cash burn, with $1.8 billion in 2023 and an expected$1.2 billion in negative free cash flow for 2024 [3] - The company has less than $100 million in cash remaining and over$900 million in accumulated debt, indicating a need to raise at least $500 million through new stock sales [4] - Morgan Stanley concludes that regardless of the loan approval, Plug Power stock remains a sell [4]