Plug Power stock extended its sharp sell-off this week, falling to its lowest level since April 2. The shares have plunged 45% from their highest level this year and have slipped below the 200-day moving average, while short interest remains elevated despite the company’s ongoing turnaround efforts.

Rising short interest despite turnaround measures

Plug Power, a top player in the hydrogen energy industry, has been in a rollercoaster this year. It initially jumped to a multi-month high of $4.32 in May as investors cheered its turnaround efforts, and then erased most of those gains, and the situation is worsening. 

The ongoing sell-off has coincided with the rising short interest. Benzinga data shows that its short interest jumped to 27.4%, a sign that many investors still expect it to continue falling in the near future.

The company has made some major changes this year, with the management suggesting that it has a path towards profitability in the future. It has also made some customer wins in the past few months. For example, it secured a new 50 MW electrolyzer order from Australia, which is being developed by Orica, a top player in the mining and infrastructure solutions.

Before that, the company completed the commissioning of 5 MW electrolyzer system at Måde Power-to-X (PtX) facility in Esbjerg, Denmark. 

Plug Power’s financial statements have also demonstrated that its business was making progress. The results showed that its revenue jumped by 22% in the first quarter to $163 million, helped by its material handling and electrolyzer businesses. It attributed this growth to its relationship with Amazon and Walmart, which use its solutions in their warehouses.

Rising gross margins

At the same time, the company said that its gross margins improved to minus 13% from minus 55% in the same period last year, a 71% increase. It attributed the margin growth to its measures to improve service execution, sales growth, and fuel sourcing efficiencies.

Plug Power also noted that it had already deployed 320 MW of electrolyzer globally and that it had an $8 billion pipeline across sectors like industrial and energy. Also, its hydrogen fuel sales rose by 22%, helped by customer growth, higher prices, and reduced warrant charges. Its hydrogen fuel margin rose by 54%.

Wall Street analysts are optimistic about Plug Power, with the average estimate for this year’s annual revenue being $813 million, up by 14.5% YoY. Also, they expect the revenue to jump to $964 million next year.

Therefore, the stock is falling as investors focus on its balance sheet. It ended the quarter with $802 million in cash, with $223 million being unrestricted. The rest is in the form of restricted cash that will be released $50 million per quarter for the next few years. With its cash burn still continuing, chances are that it may raise cash again this year.

Plug Power stock price technical analysis

PLUG stock chart | Source: TradingView

The daily chart shows that the PLUG stock price has been in a strong downward trend in the past few weeks as the recent momentum stalled. It has dropped below the 50-day and 200-day Exponential Moving Averages (EMA).

The stock moved below the key support level of $2.66, its highest point in January this year. At the same time, the Relative Strength Index (RSI) has dropped and is approaching the oversold level of 30. 

Therefore the most likely scenario is that it continues falling as investors wait for more clarity about its business when it releases its earnings, possibly on August 10.

The post Plug Power stock sinks even as turnaround story builds, short interest hits 27.4% appeared first on Invezz

Chinese artificial intelligence company Knowledge Atlas Technology JSC, better known as Zhipu AI, is seeking to raise around $4 billion through a share placement in Hong Kong.

The share sale comes after its stock surged following its market debut earlier this year.

The fundraising comes as investor interest in Chinese AI companies remains strong and technology firms increasingly tap Hong Kong’s capital markets to finance research, hiring and expansion amid China’s push to narrow the artificial intelligence gap with the United States.

Zhipu launches $4 billion share placement

According to a term sheet seen by Reuters, Zhipu is offering 19.78 million new shares at HK$1,588 to HK$1,698 each. The offer represents a 7% to 13% discount to Wednesday’s closing price of HK$1,825.

The accelerated bookbuild, a rapid share sale typically targeted at institutional investors, would increase the company’s share capital by about 4.2%, according to the term sheet.

The deal follows another strong trading session for the stock. Zhipu shares climbed 13.4% on Wednesday, extending gains in one of Hong Kong’s hottest AI stocks.

The company’s shares have surged nearly 1,500% since its January listing in Hong Kong.

The company plans to use the proceeds for research and development, including hiring, computing capacity and technical services, as well as business expansion, strategic investments, mergers and acquisitions, working capital and general corporate purposes.

Bloomberg reported that the company intends to optimize its capital structure.

China International Capital Corp. is acting as the sole overall coordinator for the offering.

AI investment boom fuels fundraising

Chinese technology companies have increasingly turned to Hong Kong’s equity markets to fund AI development as competition with US technology companies intensifies.

This week alone, several technology firms advanced Hong Kong fundraising plans.

Nexchip Semiconductor priced an initial public offering expected to raise about HK$6.98 billion ($890 million).

Separately, Shanghai Iluvatar CoreX Semiconductor Co. is seeking to raise about $850 million through a Hong Kong share sale, while Shanghai Biren Technology Co. recently raised about $900 million through a share placement.

Investor appetite for Chinese AI companies remains robust, although valuation concerns have made buyers more selective.

“Raising $4 billion gives Zhipu significant firepower to compete, but it also increases pressure on the company to demonstrate that heavy AI investment can translate into sustainable commercial returns,” said Glenn Yin, research director at brokerage ACCM in the Reuters report.

Regulatory scrutiny and AI expansion

Zhipu is one of China’s best-known AI model developers and is viewed by investors as a fast-rising Chinese challenger to US companies such as OpenAI, supported by strong demand for large language models.

The fundraising comes as Chinese authorities consider tighter oversight of advanced domestic AI technology.

Reuters reported that officials recently met with leading technology companies, including Zhipu, to discuss potentially restricting overseas access to China’s most advanced AI models.

Earlier this year, Zhipu raised HK$4.35 billion in its Hong Kong initial public offering.

The company also said last month that it plans to raise 15 billion yuan through a proposed listing on Shanghai’s STAR Market.

The company recently launched its GLM-5.2 AI model and is making the technology free and open for developers to build upon, aiming to expand adoption of its platform globally.

The latest fundraising also comes as China’s AI sector continues to evolve rapidly.

Reuters reported that AI startup MiniMax is developing a large language model with 2.7 trillion parameters, while news that DeepSeek is developing its own AI chip weighed on sentiment toward US semiconductor stocks earlier this week.

The post Zhipu seeks $4B in Hong Kong share sale after AI stock rally appeared first on Invezz

SpaceX shares SPCX are hovering near their opening price now, erasing all of the gains made after the company’s blockbuster stock market debut.

The stock fell as investors look past the boost from its inclusion in the Nasdaq-100 and instead focus on lofty valuations, broader market weakness, and concerns over elevated expectations.

The stock touched an intraday low of $149 on Wednesday shortly after the opening bell before recovering to trade around $150.72 by mid-morning.

Even with the rebound, shares remained close to their debut price of $150 and about 50% below the post-listing peak of $226 reached earlier.

They are still higher than the stock’s IPO price of $135.

SpaceX’s addition to the Nasdaq-100 was expected to generate fresh buying demand as exchange-traded funds and index funds tracking the benchmark adjusted their portfolios to include the stock.

Instead, the shares fell more than 6% on Tuesday.

To be sure, the weakness on Wednesday also came as growing concerns over heavy AI spending, rising US Treasury yields, elevated oil prices and escalating geopolitical tensions in the Middle East weighed on the broader technology sector as well.

Several semiconductor companies, including Micron Technology and Advanced Micro Devices, also posted sharp declines during Wednesday’s session.

“There’s nervousness about expectations being too high,” said Mark Hackett, chief market strategist for Nationwide, in a Reuters report.

“I expect that to continue until we get some earnings out.”

Some market watchers also argued that the decline was not unusual following the initial excitement surrounding a major IPO.

After an early rush of buying, investors often reassess whether a company’s valuation is justified by its financial performance and long-term prospects.

However, the simultaneous decline in both the stock price and trading volume suggests investors may be becoming more selective after the initial enthusiasm.

Wall Street remains overwhelmingly bullish

Despite the recent weakness, SpaceX continues to enjoy broad support from Wall Street.

Ahead of the company’s inclusion in the Nasdaq-100, nearly every major investment bank initiated coverage with bullish recommendations.

Eighteen of the nineteen firms covering the company assigned Buy ratings, with most price targets well above $200.

JPMorgan Chase began coverage with an Overweight rating and a $225 price target.

“SpaceX’s ambitions — and potential impact on humanity — are bigger than any company’s we’ve ever seen,” analysts wrote.

“While SpaceX has already reached a $2T+ market cap post its IPO, we believe significant upside potential remains as the company quite literally builds out the next frontier.”

Morgan Stanley was even more optimistic, assigning an Overweight rating and a $300 target price.

“SpaceX combines near-monopoly launch economics, the world’s largest LEO satellite network, and a fast-scaling AI infrastructure business,” analysts wrote.

“We see the company as one of the few platforms that can link real estate in orbit, global connectivity, and compute capacity into one infrastructure stack.”

Goldman Sachs also initiated coverage with a Buy rating and a $205 target.

“We see the company as well positioned to scale its differentiated advantages across space (launch & reusability), connectivity (broadband & mobile satellite constellation) and AI (compute, X, etc.) — with each of these markets having the potential to become multiple trillion-dollar opportunities over a 5+ year time horizon,” the brokerage said.

Other firms including Bernstein, RBC Capital Markets, Macquarie and UBS also issued bullish recommendations, with price targets comfortably above current trading levels.

One firm breaks from the consensus

The lone exception came from MoffettNathanson.

Analyst Julie Zhu assigned a Neutral rating and a 12-month target price of $131, making it the only major brokerage with a target below the stock’s recent trading price.

While the firm questioned the company’s valuation, its report stopped short of taking an outright bearish stance.

Among its concerns were what it described as an overly ambitious estimate of SpaceX’s addressable market, optimistic assumptions surrounding

Starlink’s satellite-to-phone business and doubts over Elon Musk’s plans to deploy massive computing infrastructure into space.

However, the brokerage also acknowledged several competitive strengths.

It noted that SpaceX effectively enjoys a monopoly in commercial launch services, with Blue Origin still years behind in terms of execution.

The report also described the launch business as the “flywheel that makes SpaceX work,” highlighting the company’s cost advantage in placing satellites into orbit and supporting the economics of Starlink.

Is SpaceX a buy at current levels?

The sharp pullback has investors wondering if it is a good level to buy the stock at.

David Jagielski of The Motley Fool argued that investors should remain cautious despite the company’s ambitious vision.

“This is, after all, an unprofitable company, and while it has grand visions for travel to Mars and putting data centers into space, those are highly ambitious objectives that may take many years to become reality, assuming the company can come through on them at all,” he wrote.

“SpaceX is the only stock that has a $2 trillion valuation or more, and that doesn’t have a highly profitable and successful business. That math on its valuation just doesn’t work, and investors who buy without taking that into consideration could incur mammoth losses. The stock’s decline may just be getting started,” he added.

Research firm Zacks echoed similar concerns, saying much of the company’s long-term growth story already appeared to be reflected in its valuation.

“Even after the recent pullback, investors are still paying a steep price for future growth that will take years to materialize,” the firm said.

Zacks said existing shareholders could continue holding the stock through near-term volatility, noting that Wall Street’s average price target still implies roughly 35% upside from current levels.

However, it advised prospective investors to remain patient.

“However, new investors may be better served by waiting for a more attractive entry point. While SpaceX’s long-term prospects remain attractive, the current valuation still offers a limited margin of safety, leaving little room for execution missteps or broader market weakness,” the firm said.

The post SpaceX stock is back to its opening price of $150: is it a buy now? appeared first on Invezz

Walmart Inc. (WMT) stock gained trading on Wednesday, as the stock looked to snap a three-week consecutive decline.

Analysts argued that the retailer’s latest grocery price cuts are financially manageable despite intensifying competition across the sector.

The company announced broad price reductions on grocery and seasonal products after President Donald Trump revealed the initiative on social media ahead of Walmart’s official announcement.

While the discounts have raised concerns about a potential grocery price war, analysts at Bank of America and Mizuho said the move fits within Walmart’s existing financial guidance and should not materially pressure margins.

Analysts say price cuts fit within Walmart’s financial outlook

Bank of America analyst Christopher Nardone said Walmart’s latest discounts are being funded through spending already included in the company’s guidance issued earlier this year, together with tariff-related refunds that have recently begun flowing back to the retailer.

According to Nardone, these financial resources allow Walmart to lower prices without changing its previously announced earnings outlook.

He added that the move reinforces Walmart’s willingness to compete aggressively in grocery, where pricing remains one of the most important drivers of consumer purchasing decisions.

Mizuho also maintained its Outperform rating on Walmart and reiterated its $137 price target, implying roughly 24% upside from the stock’s previous close.

Analyst David Bellinger noted that the retailer has multiple financial tailwinds helping offset the discounts, including more than $2 billion in expected tariff refunds and lower diesel prices, which have reduced transportation costs compared with earlier forecasts.

Grocery competition expected to intensify

Although analysts broadly supported Walmart’s strategy, they also warned that competition across the grocery industry is likely to increase during the second half of the year.

“Grocery will get even more competitive in the second half,” writes Wolfe Research’s Spencer Hanus. “With Kroger, Albertsons, Costco, and Dollar Tree (more visible $1 price points) all being very vocal about price investments, this announcement will heighten concerns about a price war.”

Hanus noted that Walmart’s price rollbacks had already increased about 20% during the first quarter and are expected to accelerate in coming quarters.

He also argued that Walmart’s pricing advantage remains difficult for competitors to match.

For every 1% pricing gap rivals attempt to close, Hanus estimates they would need to spend as much as $1.5 billion, making it difficult for most retailers to fully match Walmart’s scale.

Instead, competitors are expected to focus price reductions on staple products such as milk and eggs to improve consumers’ perception of value.

Inflation pressures continue shaping consumer behavior

The latest discounts come as consumers continue dealing with elevated living costs. Inflation stood at 4.2% in May, well above the Federal Reserve’s 2% target, while interest rates have remained unchanged.

“Above all, deflationary pricing seems very much needed for the consumer,” writes David Bellinger of Mizuho Securities.

Despite the recent pullback in Walmart shares, some market observers remain constructive on the company’s longer-term outlook.

CNBC’s Mad Money host Jim Cramer said the stock’s 17.5% decline from its May record high represents an attractive buying opportunity, arguing that several of the company’s key challenges are beginning to ease.

The post Walmart stock gains after price cuts as analysts back grocery strategy appeared first on Invezz