Should You Buy Plug Power Stock?

Investors are eagerly awaiting Plug Power's upcoming earnings report and buying up shares in hopes of seeing some positive signs. Recently, CEO Andy Marsh sat down with Barron's and expressed his confidence that the company will be stronger by the end of the year. However, this optimism is tempered by the reality that Plug Power still requires significant funding to sustain its operations.

Despite the challenges ahead, the stock has received a boost from an analyst upgrade, which is likely to drive prices higher. Nevertheless, investors should be aware that the company's financials are expected to remain shaky in the near term, at least until it secures additional funding.

One of the key concerns for Plug Power is its cash burn rate. The company will likely report another big loss in its fourth-quarter earnings, and things may not improve significantly until it secures a new influx of capital. However, Marsh has hinted that there are other options on the table for raising funds, which could alleviate some of these concerns.

Another positive development for Plug Power is the start-up of its green hydrogen plant in Georgia. Once fully operational, this facility could significantly cut costs and make the company more competitive in the market. In addition, the plant has already begun producing fuel that can be used to power over 3,200 fork trucks per day, which is a significant milestone for the green hydrogen industry.

While investors may be excited about Plug Power's prospects, it's essential to remember that the company still faces significant challenges ahead. For one, it will need several other facilities under construction to begin production in order to stem its losses. Additionally, supply chain issues delayed the start-up of its Georgia facility, and the company was forced to purchase hydrogen on the open market at a loss during this time.

Despite these obstacles, Marsh remains confident that Plug Power can overcome them and emerge stronger in the end. However, investors should be prepared for the possibility that the company may need to sell shares from its previously announced at-the-market stock offering, which could put pressure on the stock price.

Ultimately, whether or not you should buy Plug Power stock depends on your investment thesis and risk tolerance. If you believe in the potential of the green hydrogen industry and are willing to take on some near-term risks, then Plug Power may be worth considering. However, if you're looking for a more stable investment with a clear path to profitability, then you may want to look elsewhere.

Should i buy plug power stock