Plug Power (PLUG) Stock: 3 Reasons Why the Red Ink is a Discount[Stocks](https://moneymorning.com/category/article/stocks/) # Plug Power (PLUG) Stock: 3 Reasons Why the Red Ink is a Discount  by Joshua Enomoto  October 15, 2025  Share it: Frankly, investors don’t need an exegetical analysis of why **Plug Power** ( [PLUG](https://moneymorning.com/stocks/plug)) is risky. From negative revenue growth to the subterranean share price, the hydrogen fuel cell developer has a massive credibility gap to traverse. Not only that, people tend to have long memories — especially when tied to deep financial losses. Nevertheless, not all hope may be lost. After all, we’re talking about a security that managed to gain more than 81% on a year-to-date basis. Yes, much of that — probably most of that — is related to pure speculation. However, that speculation is also tied to fundamental drivers. For example, Plug Power has already worked with **Microsoft** ( [MSFT](https://moneymorning.com/stocks/msft)) to provide emissions-free [backup power](https://www.plugpower.com/blog/hydrogen-fuel-cells-in-data-centers-a-clean-energy-revolution/?utm_source=chatgpt.com) for data centers. Below are three more reasons why risk-tolerant investors are eyeballing Wednesday’s discount in [PLUG](https://moneymorning.com/stocks/plug) stock: ## **Technical Profile May be Screaming ‘Buy’** From the end of September to the current juncture, [PLUG](https://moneymorning.com/stocks/plug) stock may be forming a bullish pennant formation. This pattern consists of a “flagpole” between Sept. 30 and Oct. 6, along with a consolidatory pennant formation that’s developing right now. At the eventual apex, the discipline of technical analysis suggests that the share price can skyrocket higher. Is it a heuristic? Absolutely — it would be foolish to bet on [PLUG](https://moneymorning.com/stocks/plug) stock merely because of the charting equivalent of interpretive jazz. However, the pennant appears to be forming at least in part due to belief in the enterprise’s fundamental potential. ## **PLUG Stock is a Potential Short Squeeze** Right now, Fintel estimates that the [short interest](https://fintel.io/ss/us/plug) of [PLUG](https://moneymorning.com/stocks/plug) stock stands at 34.27%. That’s extremely high, which means that out of the pool of publicly available shares, more than a third are earmarked (loaned out) for shorting activities. To be fair, not all figures that comprise the short interest count implies deliberate bearishness. However, a plus-30% stat almost certainly suggests that at least some speculators are taking direct bets against [PLUG](https://moneymorning.com/stocks/plug). With the bears potentially aligned so strongly against the hydrogen specialist, an unexpected pivot in share price could lead to a positive feedback loop — the powerful [short squeeze](https://moneymorning.com/2025/10/07/can-plug-powers-plug-ai-relevance-save-the-plug-stock-rally/). ## **Probabilistic Distributions Relatively Favor Plug Power** Based on aggregate data from January 2019 onward, the expected probabilistic distribution of 10-week returns would generally place [PLUG](https://moneymorning.com/stocks/plug) stock well below the starting point. Price will mostly range between $3.50 and $3.80, with the meat of outcomes landing between $3.60 and $3.70. That’s not great when the anchor price is $3.78.  However, quantitatively, [PLUG](https://moneymorning.com/stocks/plug) stock is currently structured in a 6-4-U formation: six up weeks, four down weeks, upward trajectory. This population group will likely range between $3.50 to $4, with the bulk of prices landing between $3.75 and $3.85. That’s not great but there’s at least a statistical potential for sustained upside. **Beat the market, without relying on brokers or biased institutions.** Email(Required) URL This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. 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