Plug Power Inc (PLUG) Stock Price: Shares giving up some gains after recent run

Update: PLUG shares are trading lower on Monday. Goldman Sachs warned on Monday that “one part of the market that appears frothy and may pose a broader risk is extremely high growth, high multiple stocks.” Goldman listed 39 stocks that investors should take note of. PLUG was included in that list.

Update: PLUG Power Inc (PLUG) CEO Andrew Marsh acquired shares in PLUG on January 19 by exercising options and sold them the same day for over $37 million, according to an SEC filing. The purchase cost of the PLUG shares was about $1.65 million. Shares in PLUG appeared unaffected and remained strong on Friday, trading up 2% in early trade.

Update: PLUG shares are trading lower on January 20. Kerrisdale Capital tweeted that it is short the stock. 

Plug Power Inc (NASDAQ: PLUG) has plenty of fuel in its tank to extend its rally. The Latham, New York-based company makes hydrogen fuel cell systems that serve as a substitute for legacy batteries and is geared toward the automotive sector – where its most recent boost came from.

Groupe Renault, the conglomerate behind the Renault cars which are common in Europe, signed a joint venture with Plug Power. The companies will set up a facility in France that would integrate the American firm's technology into the French carmaker's commercial vans. 

Renault CEO Luca de Meo and Plug Power CEO Andrew J. Marsh aim to capture over 30% of Europe's fuel cell-powered light commercial vehicles. The new joint venture includes not only a manufacturing facility, but also Research and Development, sales, and customer service.

The critical partnership places PLUG in the big league of global automakers and is behind the recent rally, which already values the firm at over $30 billion. It previously announced a deal with South Korea's SK and investors may already be eyeing new partnerships. 

Jeffrey Osborne, an analyst at Jefferies, said that the Renault deal serves as "validation" for the firm's technical ability in both electrolyzers and fuel cells, setting a price target of $73.50. 

PLUG stock forecast

NASDAQ: PLUG's surge of 22.33% on Tuesday comes after previous moves earlier in 2021, with shares more than doubling in value. Looking back to early December, Plug Power traded below $30. C

Can this impressive run continue? Wednesday's premarket trading data is pointing to another gain of over 5% to nearly $70. Will some take profits after the rally? There is a good chance that a downside correction is coming. 

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