Plug Power: Don’t Be Early On A Longshot

Summary:

  • Plug Power’s stock is at a low point despite sales and business growth.
  • The company struggles to make money due to high costs and inability to scale revenues.
  • Plug Power relies on debt, equity financing, and government support, posing risks of further dilution and dependence on favorable financing.
  • As such, I think it’s better to wait for the fundamentals to improve, even if it means a higher cost basis.

Hydrogen energy storage gas tank for clean electricity solar and wind turbine facility.

Vanit Janthra/iStock via Getty Images

Plug Power (NASDAQ:PLUG) is another example of a mission-driven company where the mission and the economics have a hard time lining up. Consequently, the stock is some of the lowest it’s been in recent years.


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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