Plug Power Aims for Growth Despite Risks of High Losses and Stock Dilution
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Plug Power has resolved its liquidity issues and now has enough cash to continue operating. It has cut costs, secured financing, and is working on a loan from the Department of Energy.
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Plug Power aims to capitalize on the massive growth opportunity in hydrogen. It's investing in production plants and projects revenue growing to $20 billion by 2030.
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However, Plug Power continues to lose lots of money - over $1 billion in 2022 even as revenue grew 27%. Its stock price has plunged 75% in the past year.
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Plug Power's growth plans require selling more shares, which could further pressure its stock price. Its shares outstanding have already increased over 170% in 5 years.
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Plug Power has great potential but is very high-risk currently as it fails to deliver profits and shareholder value. Investors may want to wait to see if the company can start executing better.