That’s 51% more than it lost in 2021, when interest rates were much lower.Īnalysts looking for the company to turn the corner on profitability are walking away in disappointment. The company had a net loss of $724 million last year, amounting to $1.25 per share. Plug Power needs scale to operate profitably, so the Federal Reserve’s recent interest rate hikes have come at the wrong time. But that requires capital, and as capital costs have increased, Plug Power has been forced to slow its spending. Plug Power hopes to sell $5 billion of hydrogen annually by 2027. Combining hydrogen gas and oxygen results in energy and water, so you have a virtuous cycle without using carbon. Hydrogen can be commercially extracted from alkali pools using renewable energy, and it can run warehouse forklifts for much longer than conventional batteries. In theory, Plug Power has a great business that’s also great for the planet. But whether it reaches that value depends on events outside its control. Additionally, analysts estimate the intrinsic value of Plug Power as 78% higher than the current stock price. Notably, analysts expect a profit by the third quarter. Losses are expected to narrow significantly when the company reports its first quarter numbers on May 8. To its credit, management recognizes this. Plug Power revenue grew 40% last year, but that’s not good enough for many investors, given $1.27 went out the door for every $1 that came in. In 2023, investors need to see black ink on the bottom line. Plug Power (NASDAQ: PLUG) had a story, and PLUG stock soared higher. In 2021, unprofitable companies with remarkable growth profiles really outperformed, for companies that had a story.
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