Plug Power Invests in Hydrogen Future as Market Cap Falls to $2.9 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Value Plummet: Plug Power's market capitalization has fallen from a peak of over $35 billion to its current $2.9 billion, with its stock price down 99.9% from its highs, indicating severe financial challenges ahead for the company.
- Massive Losses: The company reported a net loss of $785.6 million through the first nine months of this year against revenues of only $484.7 million, leading to a cash crunch with net cash used in operating activities reaching $90 million in Q3.
- Increased Financing Pressure: To sustain operations, Plug Power raised $370 million in October by issuing 185.4 million shares, resulting in a staggering 673% increase in outstanding shares over the past decade, severely diluting existing investors.
- Uncertain Profitability Outlook: While Plug Power anticipates achieving overall profitability by 2028, it faces significant risks if the hydrogen market does not develop as quickly as expected, potentially necessitating further capital raises to support its business plans.
PLUG
$2.05+Infinity%1D
Analyst Views on PLUG
Wall Street analysts forecast PLUG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLUG is 2.95 USD with a low forecast of 0.75 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
5 Buy
8 Hold
3 Sell
Hold
Current: 2.110
Low
0.75
Averages
2.95
High
7.00
Current: 2.110
Low
0.75
Averages
2.95
High
7.00
About PLUG
Plug Power Inc. is engaged in offering end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals. The Company develops commercially viable hydrogen and fuel cell product solutions. It provides electrolyzers that allow customers, such as refineries, producers of chemicals, steel, fertilizer and commercial refueling stations, to generate hydrogen on-site. It focuses on industrial mobility applications, including electric forklifts and electric industrial vehicles, at multi-shift high volume manufacturing and high throughput distribution sites and environmental benefits; stationary power systems that supports critical operations, such as data centers, microgrids and generation facilities, in either a backup power or continuous power role and replace batteries, diesel generators or the grid for telecommunication logistics, transportation, and utility customers; and production of hydrogen.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
