Plug Power (NASDAQ: PLUG) stock has been tumbling ever since it reported its third-quarter results in early November. A new announcement today has the stock dropping even further. Plug shares were trading near the day’s low, down by 10.2% as of 12:40 p.m. ET.
With today’s drop, Plug Power stock has plummeted by nearly 50% in just the last two months.
Is bad news on the way?
In its third-quarter report, the company stated, “[W]e continue to incur losses and might never achieve or maintain profitability.” It also issued a “going concern” warning, which lets investors know there’s a possibility that it will not survive as a business.
Plug said its hydrogen business has been impacted by supply-chain disruptions, a high inflation and interest-rate environment, and economic uncertainty around the world. It also noted that it may need to raise additional capital.
Investors seemed to get spooked today when the company announced CEO Andy Marsh will hold a business update conference call along with Chief Financial Officer Paul Middleton next week.
The investment case remains shaky
No one knows if next week’s update will be good or bad news. The company could report that supply-chain disruptions are easing and it’s happy that it’s progressing in the right direction. But Plug Power has underperformed on its revenue expectations in recent years.
Though the company has slowly but steadily been increasing revenue, the $200 million in revenue reported in the third quarter was down from $260 million in the prior quarter. Investors were very disappointed by that report and the note that Plug may need to raise additional capital.
Next week’s update will go a long way toward determining the next direction for the stock. There’s no use in speculating, however, and some investors probably decided to move to the sidelines today.
Should you invest $1,000 in Plug Power right now?
Before you buy stock in Plug Power, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Plug Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
Â
*Stock Advisor returns as of January 8, 2024
Â
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Plug Power Shares Plunged Again Today was originally published by The Motley Fool
Signup bonus from
