Plug Power +66% after Amazon acquires right to buy stake

|By:, SA News Editor

Plug Power (PLUG +66.2%) pushes out to 52-week highs on its surprise deal to supply batteries to power forklifts used by Amazon in the online retailer's warehouses in exchange for the right to buy up to 23% of the company.

Raymond James analyst Pavel Molchanov sees the deal as one of the few bright spots that highlighted the potential for growth in the fuel cell industry, which had lost favor with investors as the technology failed to gain traction; Plug itself lost more than two-thirds of its market value since Q1 2014, when it was valued at more than $1B.

Molchanov also notes that Plug's narrow focus of powering forklifts with fuel cells essentially makes the company the only player in the market.

Other fuel cell companies are higher: HYGS +5%, FCEL +7.2%, BLDP +0.6%.