Hydrogen supplier Plug Power (NASDAQ:PLUG) stock fell over 9% overnight despite saying it no longer has a “going concern” problem.
The company said it has “sufficient cash on hand coupled with available liquidity” to fund its operations for the foreseeable future. However, it still posted a large loss of $1.37 billion, $2.30 per share, on revenue of $891 million for the year.
PLUG stock is expected to open this morning at $3.21 per share, a market capitalization of under $2.2 billion.
Plugging Back In?
The loss was worse than analysts expected. The consensus from FactSet was for a loss of $1.58 per share. Revenue was down 22% from 2022. Over the last year, Plug Power has lost 76% of its value while the S&P 500 average is up 28%.
Plug Power began as a maker of fuel cells for forklifts but remade itself this decade into a full “green hydrogen” supplier. That means it creates hydrogen gas from renewable sources.
But hydrogen is hydrogen, whether it comes from natural gas, an alkali pit, or it’s pumped from the Earth like oil. That’s why Piper Sandlin downgraded Plug Power to “underweight” late last year with a $2.50 per share price target.
Plug Power also stores and transports hydrogen to customers and produces the hydrolyzers that separate hydrogen from oxygen in water. The aim is to create a sustainable ecosystem of hydrogen supply, from its creation to its distribution to customers. Last year, Plug Power bought Applied Cryo Technologies and Frames Group to increase the size of this system.
Plug Power also signed deals last year to supply hydrolyzers to French and Australian companies, although the latter deal remains subject to negotiation.
There remain traders who are bullish on Plug Power at Stocktwits, with some still hoping for a short squeeze. But the consensus forecast at Tipranks is a hold, with three sellers.
PLUG Stock: What Happens Next?
Many analysts no longer have high hopes for Plug Power, and I don’t either. Hydrogen is hydrogen. Calling hydrogen “green” doesn’t make it more valuable.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
