|Bid||0.0000 x 36100|
|Ask||0.0000 x 34100|
|Day's Range||2.2700 - 2.3350|
|52 Week Range||0.9900 - 2.8700|
|Beta (3Y Monthly)||0.68|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 7, 2019 - Aug 12, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||3.04|
If you're interested in Plug Power Inc. (NASDAQ:PLUG), then you might want to consider its beta (a measure of share...
I don't always understand trends, but I do recognize them. And for whatever reason, Plug Power (NASDAQ:PLUG) attracts a lot of eyeballs. Now, part of it is due to the company's strong performance in the markets. At time of writing, the PLUG stock price is trading hands at $2.30, representing an over 85% year-to-date haul. That is serious power!Source: Shutterstock Another element likely driving positive sentiment is the company's longer-term potential. Back in the craziness of the 2000 tech bubble, Plug Power stock reached well into four-digit territory. When you compare where shares once were to where they are now, you can't help but wonder: a return to those heights is the stuff of cryptocurrency dreams.Finally, you have the technological fundamentals underlining PLUG stock. As most of you likely know, Plug Power specializes in hydrogen fuel cell systems. Scientifically, it's an exciting arena, potentially offering another pathway to total energy independence. That right there appeals to a broad segment of the population, from traditionalists to trendy millennials.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Second Half of 2019 Moreover, these same fundamentals attracted buyers several years ago to companies like Tesla (NASDAQ:TSLA). Today, speculators are piling into similar electric vehicle and alternative-energy companies like NIO (NYSE:NIO). The allure of untold upside gains justified by next-generation technologies keeps investors salivating.But are these factors good enough to consistently bring home shareholder returns in Plug Power stock? I have my doubts, which focus on one concept: you've got to understand the science of alternative energy.When you do, you'll see that whatever drives the PLUG stock price is mostly human psychology in action. If it traded on the actual science, PLUG would soon be unplugged. PLUG Stock Has the Narrative but Not the SubstanceYou don't have to be a scientist to understand that limitations govern life. For instance, if you're running late to the office, you could literally do that: run. But if you do, you'll expend energy. And the longer you run, the rate at which you burn energy will accelerate.In economic and financial terms, we call this the law of diminishing returns. Further, there's an adage that states you can't have your cake and eat it too. And these principles stymie the longer-term narrative of the PLUG stock price.Let's consider the broader marketing message behind PLUG. With their alternative-energy sources, society can achieve multiple goals at once. These include cleaner emissions and eventually no dependency on volatile Middle Eastern politics. Theoretically, alternative energies keep consumer costs low, protecting us from price gouging at the pump.Naturally, the message resonated with risk-takers, boosting the market value of Plug Power stock. Yet the science is not clear about the benefits of hydrogen fuel cells. According to a litany of counterarguments against hydrogen energy by CleanTechnica.com contributor Zachary Shahan, based on a post on this blog, this energy subsegment could be pure hype.While some of the points have been disputed, Shahan reiterates some of the post's detailed criticisms, such as that fuel cells wear out more quickly than lithium-ion batteries, and are difficult to regenerate. Furthermore, he makes the claim that hydrogen as a fuel is very difficult to make. I pulled up an article from Energy.gov which confirms Shahan's concerns. Hydrogen also has significant infrastructure problems.While I won't dissuade anyone from taking potshots at Plug Power stock, you've got to look at the real fundamentals. I don't think they speak kindly about the long haul.Instinctively, you know what Shahan and other critics say is true. If you enhance one attribute, you necessarily sacrifice others. PLUG looks like that tardy worker who claims he can run for hours without breaking a sweat. Plug Power Stock Masquerades as a Legitimate InvestmentHere's the thing that confounds the picture regarding PLUG stock: the underlying technologies actually work. Many high-profile names, including Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), and General Electric (NYSE:GE), have signed on with various deals and partnerships.But that doesn't mean the technology is economically viable. Tesla CEO Elon Musk called hydrogen-based cars "mind-bogglingly stupid." You'll recall that Musk himself doesn't always make smart decisions. Hydrogen-based cars are currently very expensive, and so are the fueling stations. But that doesn't mean the technology has topped out. And of course, hydrogen-based cars would be a real threat to Tesla if they became affordable to the average driver.However, I'm going to go a step further: pure EVs aren't the answer, either. For drivers to have clean emissions and attractive, sporty rides, they must sacrifice something. Often, this means a higher ticket price, or inconveniences such as long charging times. While some folks can afford these costs, most probably can't.To summarize, PLUG stock represents a viable technology in that it works. However, Plug Power is not a viable business because hydrogen currently doesn't work efficiently. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Until we change that -- and it will be a while before it happens -- I wouldn't risk excessive funds on Plug Power stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post The Tech Behind PLUG Stock Still Needs to Catch Up to the Promises appeared first on InvestorPlace.
Plug Power's (PLUG) fuel cell products are being marketed to a wider customer base, courtesy of its new products and strategic acquisitions.
The new order for FM's Logistic's facilities across France marks the latest push into Europe for the Latham-based hydrogen fuel cell manufacturer.
Plug Power Inc. (PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, announces today an expanded contract with FM Logistic, making it the first traditional GenKey customer in Europe.
It's been a rough few decades for hydrogen fuel cell maker Plug Power (NASDAQ: PLUG). PLUG stock traded above $1,000 per share back in 2000 before the dot-com bubble burst, but it has been trading under $5 for the past ten years.However,Plug Power stock has made its way back onto many investors' radar after it formed a few significant partnerships and the firm looked to be headed in a more promising direction. PLUG's stock price is up more than 40% so far this year, leading many to wonder if the gains will stick this time. Q2 EarningsAt the end of June, Plug Power's management said the firm was poised to deliver its best Q2 results ever when it announces its earnings on Aug. 8. The record-breaking quarter is expected to feature the delivery of some 2,000 fuel cells, a 70% increase over the same period a year earlier.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Second Half of 2019 The new deliveries mark somewhat of a milestone for PLUG, as they illustrate the firm's growing customer base and its ability to expand both inside and outside of its core market.Plug Power CEO Andy Marsh said that, in addition to growing PLUG's sales within its core material handling market, the firm has also been able to expand into small-scale robotics and unmanned aerial vehicles through its recent strategic acquisition of Energyor. Plus, Marsh said that PLUG's partnership with CHEM has allowed it to gain a foothold in the telecom industry. What It Means for PLUG StockThe 70% increase in fuel cell-unit deliveries is undoubtedly great news for Plug Power, but what does it mean for PLUG stock price? That's debatable.For one thing, the deliveries themselves don't necessarily translate into top-line growth. Analysts, on average, are expecting to see revenue of just $49.7 million from PLUG in Q2 because the company doesn't always recognize the revenue from every delivery in its quarterly results. Management said the firm is still expecting to meet its full-year revenue guidance of between $235 million and $245 million. Investors' Ambivalence Towards Plug Power Stock InvestorPlace's Vince Martin pointed out that, despite PLUG's announcement about its Q2 results, PLUG stock price increased only marginally because investors simply don't trust that the gains will stick. I can't blame them; this isn't the first time the firm has shown a great deal of promise. In fact, over the past 20 years, there have been several instances in which great news about PLUG stock has come out, but Plug Power stock never actually advanced.That's because Plug Power's business isn't airtight. There's a lot of debate over whether or not hydrogen fuel cell technology will be relevant in a decade or so. For one, lithium-ion technology has the potential to take away some of PLUG's largest customers. But even more worrying is the fact that PLUG's bread and butter, forklifts, is not exactly an expansive market. Even if competing technology isn't able to steal market share from PLUG, the company needs its bets on robotics and drones to pay off in order to keep growing and maintain the upward trajectory of PLUG stock. Is Plug Power Stock Worth a Shot?I'm willing to bet PLUG will deliver on its Q2 forecast, perhaps even beating the already high expectations. However, while increased deliveries is certainly worth celebrating, I don't think that's the most important metric to use to attempt to determine the future of Plug Power stock.The first metric to evaluate is margins. Plug Power has been working to take control of its supply chain with strategic acquisitions, and improving profitability would be a sign that those purchases are paying off. In order to be a winning stock, PLUG needs to be consistently profitable, something the firm hasn't been able to do until now.I'd also like to see Plug Power's bets outside of materials handling make meaningful progress. The firm's EnergyOr purchase brought ultra-lightweight fuel cells under PLUG's umbrella, giving it the potential to expand into robotics and drones. However, that's still a long way off, and we haven't seen any real evidence that hydrogen can replace, or even compete with, batteries. The same is true, and perhaps even more apparent, in the automotive space. Earlier this year PLUG partnered with StreetScooter to create delivery trucks powered by hydrogen-fuel cells. The firm is expected to deliver 100 of those trucks to Deutsche Post DHL in 2020. That's great news, but can PLUG find other large customers? Battery-powered vehicles have much larger market share than those powered by fuel cells, and fuel-cell technology appears to be all but ignored. The Bottom Line on Plug Power StockI'll need more evidence before I'm willing to believe that this time is different for PLUG stock. While the firm looks to be on a promising path, I don't think there's enough evidence just yet to consider it a winning company. I'll be watching from the sidelines, unless PLUG is able to prove that its technology has meaningful traction in at least one of its new markets.As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Can "Record Q2 Results" Pump Up Plug Power Stock? appeared first on InvestorPlace.
I have to admit, I've used Plug Power (NASDAQ:PLUG) as a cautionary tale on a number of occasions when advising folks to be wary of IPO hype. If you can believe it, the PLUG stock price once traded in the $1,500 range; only a few years later, Plug Power stock was under 20 cents.Today, PLUG stock is in the low-to-mid $2 area and seems to have found a comfortable range - or a boring range, depending on whom you ask.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLooking beyond the recent price action, there's actually nothing dull about this stock at all. Indeed, PLUG shares shed a gut-wrenching 48% last year but then gained more than 81% in the first half of 2019. In just the month of March, Plug Power stock gained a dazzling 34%. * 10 Best Stocks for 2019: A Volatile First Half Given the fact that this stock has traded much higher than the current range, I'm actually prepared to go out on a limb and lean bullish on PLUG. I feel that I'm in good company here, as Plug Power has received a capital infusion from Amazon (NASDAQ:AMZN) to the tune of $600 million as well as substantial product orders from the likes of from Walmart (NYSE:WMT) and General Electric (NYSE:GE). No Shortage of OptimismPerhaps more than anything else, what fueled PLUG stock's incredible performance in the first half of 2019 was analyst enthusiasm. For instance, B. Riley FBR analyst Carter Driscoll issued a buy rating on Plug Power stock along with a $3.50 price target; meanwhile, analysts at H.C. Wainwright & Co. also published a buy rating and assigned an eye-opening $4 price target for PLUG shares.Plug Power CEO Andy Marsh has been equally optimistic and has put some of his own skin in the game, buying 12,286 PLUG shares at an average price of $2.44, representing a $30,000 transaction. Sure, I've seen larger insider purchases, but at least Marsh is putting his money where his mouth is, and I feel that's a good sign. A Second-quarter Stunner?Speaking of enthusiasm, Plug Power released predictions for Q2 2019 that were rather encouraging, to say the least.In particular, the company's statement asserted that Plug Power "is on track to deploy approximately 2,000 fuel cell units to a variety of new customers and for expansions of many existing customer programs," which would (assuming they meet this objective) constitute a record for the company.The press release added that "the deployment volumes equate to an approximately 70% increase from the prior year second quarter" and that Plug Power "remains on target to meet full year guidance of $235 to $245 million in gross billings and positive adjusted EBITDA for the full year of 2019."That's big talk, but the company's CEO seems prepared to back it up, with Marsh pointing out the industry-changing potential of Plug Power's ProGen fuel cell engine product line as well as the company's acquisitions of EnergyOr - a leader in advanced lightweight and compact PEM hydrogen fuel cell systems - and American Fuel Cell, a premier developer of Membrane Electrode Assembly (MEA) technology, the key catalyst for fuel cells to create power. The Bottom Line on Plug Power StockPlug Power has characterized itself as "the innovator that has taken hydrogen and fuel cell technology from concept to commercialization," and I happen to concur with that assessment.Granted, I'll continue to use post-IPO Plug Power as a cautionary tale against buying on media hype, but at the current valuation I'm fully prepared to recommend PLUG stock as a "buy" if you're anticipating an electric Q2 in the making.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Thereas Finally Some Good Reasons to Be Excited About PLUG Stock appeared first on InvestorPlace.
Fuel cell developer Plug Power (NASDAQ:PLUG) has had a good 2019. The PLUG stock price has jumped 85% so far this year. Plug Power remains on track to deliver much improved full-year results. A recent acquisition should expand its capabilities. But recently, Plug Power stock has pulled back, as PLUG stock price has retreated 13% in the last month.And since touching an 18-month high in late May, PLUG stock price has dropped some 19%. There's been little news about PLUG in the last six weeks, and the news that has surfaced looks positive for Plug Power stock. Broad markets are doing well, and risky tech bets ( PLUG certainly is in that category) appear to be holding up well. * The 7 Top Small-Cap Stocks Of 2019 So why has PLUG stock price declined? The problem appears to be trust. I wrote after the company's Q1 earnings report in May that it looked like Plug Power was converting skeptical investors. The company reiterated its guidance after what looked like a weak first quarter, and investors reacted reasonably well to the news.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the decline from the highs shows that the market retains some skepticism toward Plug Power. It's up to the company itself to change that and if it can, PLUG stock finally might be able to hold its gains. Good News Doesn't Faze InvestorsIn the last six weeks, as PLUG stock has fallen, the company appeared to have delivered two pieces of reasonably good news. On June 11, the company acquired EnergyOr, a Montreal-based manufacturer of lightweight fuel cells.EnergyOr's offerings expand Plug Power's addressable market into areas like robotics and drones. The acquisition doesn't appear to be a huge one for Plug Power: the purchase price wasn't disclosed, and the company hasn't filed an 8-K about the acquisition (it would have had to file an 8K if the deal was reasonably large). Still, EnergyOr at worst appears to increase Plug's potential.Then, on Thursday, the next-to-last business-day of the second quarter, PLUG announced that it was poised to report record Q2 results. The company also reaffirmed its revenue and Adjusted EBITDA guidance.Q1 results cast some doubt on the full-year guidance, and at least required the company's performance over the rest of the year to improve. Plug Power's performance is improving, yet PLUG stock price has risen only a few percent on the news. What Can Push PLUG Stock Higher?What investors seem to be saying is that good news isn't enough to boost PLUG stock. That's not necessarily a surprise. PLUG stock isn't cheap; its EBITDA this year is guided to be only "positive," not large. Plug Power stock still trades at a bit over two times the company's sales; that's not a cheap multiple for a manufacturer with gross margins that remain reasonably low.And while PLUG seems a bit like a startup, it isn't. The company has been around for over two decades. Incredibly, as Bloomberg detailed, it took until last year's fourth quarter for the company to post its first profit even on an Adjusted EBITDA basis. At its dot-com peaks, on a split-adjusted basis, PLUG stock price was over $1,000. It traded for over $6 in 2014.Plug Power has shown signs of potential many times over the last 20 years. Each time, Plug Power stock has disappointed. And it's simply going to take time for Plug Power to prove that this time is different.And it might be. Partnerships with Amazon.com (NASDAQ:AMZN) and Walmart (NYSE:WMT) are impressive. (Amazon also owns a decent amount of Plug Power stock and warrants.) PLUG also is conducting a pilot test with FedEx (NYSE:FDX). At worst, the company seems to have a real business with a chance of generating substantial profits.But it's also a business that's still valued at over $500 million. The value of the technology remains up for debate; Tesla (NASDAQ:TSLA) CEO Elon Musk has called the technology "fool cells" (although he was referring more to its application in vehicles than to Plug Power's commercial products). And Plug Power still is a long way from generating real free cash flow.It looked after Q1 like investors might finally trust Plug Power. It seems at the moment like that's not entirely the case. Until that changes, PLUG stock may continue to be stuck.As of this writing, Vince Martin has a bearish options position in Tesla. He has no positions in any other securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential The post Trust Is Clearly Still a Problem for Plug Power Stock appeared first on InvestorPlace.
Many investors are once again paying attention to Plug Power (NASDAQ:PLUG) stock. After building relationships with some of America's top companies, acquiring hydrogen fuel cell maker EnergyOr, and issuing positive second-quarter guidance, PLUG has made many people feel more optimistic about the company.However, the euphoria has not directly impacted PLUG stock. PLUG stock price stands at about $2.20 per share, leaving this penny stock stuck in a trading range. Although many investors could rush to buy PLUG stock if it reports blowout Q2 results, traders need to treat Plug Power stock as a speculative play at best. * 5 Dividend Stocks to Buy From Across the Globe Plug Power Provided Strong Q2 GuidancePlug Power announced in late June that it would have its best Q2 in history when it announces its earnings on Aug. 8. It anticipated that it would deploy about 2,000 fuel cells during Q2.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company also said that it would meet its full-year revenue guidance of between $235 million and $245 million and would report positive 2019 EBITDA. After the company made these announcements on June 25, PLUG stock dipped and then rebounded to levels close to where it had traded before the news. Fuel Cells Draw Greater InterestIn many ways, PLUG stock appears to be an equity that can move much higher. During the late 1990s tech bubble, Plug Power stock did indeed jump, as it once sold at around $1,500 per share on a split-adjusted basis.However, reality eventually caught up with PLUG stock, and it closed at $2.28 per share on Wednesday. Unfortunately for the owners of Plug Power stock, companies and consumers have focused less on the hydrogen fuel cell power provided by PLUG and more on solar power and the battery power used in electric cars made by firms such as Tesla (NASDAQ:TSLA).Although fuel cells are not being widely incorporated into passenger cars, they have become increasingly widespread in smaller vehicles used in industry. And PLUG stock was the focus of some attention in 2017 when Amazon (NASDAQ:AMZN) invested $600 million in the company, as it bought shares of PLUG stock and many forklifts powered by Plug Power's fuel cells.PLUG subsequently received orders for its products from Walmart (NYSE:WMT) and GE (NYSE:GE). Moreover, PLUG's acquisition of EnergyOr, announced in June, should enable the company to generate meaningful revenue from makers of robotics and unmanned aircraft.Additionally, Market Research Engine believes the fuel cell market will grow to $3.48 billion by 2025, representing a 13% compound annual growth rate. PLUG's competitors, such as Ballard Power Systems (NASDAQ:BLDP) and Bloom Energy (NYSE:BE), are also well-positioned to benefit from the space's growth. PLUG Stock and Its Peers Remain SpeculativeI stated in a previous article that Bloom has reported stronger financial results than PLUG. However, Bloom 's results aren't really very strong either.Still, given PLUG's deals with Amazon and other top companies, one might assume that PLUG stock has performed well. However, PLUG stock has traded in a range since PLUG's deal with Amazon.Also worrisome is the growing supply of PLUG stock. Since 2011, the number of shares outstanding has risen from just 22.67 million to 245.8 million today. While the dilution of Plug Power stock has slowed since Amazon bought its stake, the high number of shares decreases the chance of a stratospheric rally like the one that occurred in the late 1990s. However, if the company's Q2 results meet or beat expectations, PLUG stock price could rebound to nearly $6 per share , the level it last reached in 2014. Should Investors Buy PLUG Stock?PLUG stock has again become speculative. I was cool to the idea of buying Plug Power stock as recently as two months ago. Other than its relationship with Amazon, neither prominent new customers nor acquisitions have significantly affected PLUG stock price.However, even if hydrogen fuel cells are never integrated into passenger cars, they are being incorporated into less widespread industrial vehicles. Further, the EnergyOr takeover has opened up new markets for PLUg, and that should benefit PLUG stock. Finally, analysts, on average, expect PLUG to be profitable in 2021 at the latest.Analysis cannot predict the kind of euphoria that gripped PLUG stock in 2000 or alternative-energy stocks more recently. However, a strong quarter could at least take PLUG stock out of penny-stock status and perhaps back above its 2014 levels. While PLUG is still too risky for retirement accounts, its potential makes it worth speculating on.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post Plug Power Stock Will Either Juice or Electrocute Portfolios appeared first on InvestorPlace.
It's not only management's promise that profitability -- of sorts -- lies around the corner that has electrified investors' hopes this year.
Recent acquisitions and growing relationships with core customers are helping this fuel-cell specialist rebound from its rocky start to 2019.
Plug Power (NASDAQ:PLUG) isn't typically in headlines, except as a cautionary tale about investing in alternative energy. The manufacturer of hydrogen fuel cells once traded in the $1,500 range but PLUG stock collapsed to the point where it is a penny stock.Source: Fedex However, Plug made headlines starting on Wednesday -- albeit self-generated headlines -- with a rare bit of good news. By the time the markets closed on Thursday, PLUG stock price had climbed 3.74% on the day and continued to move in a positive direction in pre-market trading. Plug Power Stock Gets Boost From News of Record QuarterPlug stock took a big hit in May when the company reported Q1 earnings that missed Wall Street estimates, with losses of 15 cents per share. The company is getting ahead of the earnings story this time. Although it's not expected to report its Q2 earnings until August 8, on Wednesday, Plug put out a press release saying it is on track for a record Q2, stating:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"In the second quarter 2019, Plug Power is on track to deploy approximately 2,000 fuel cell units to a variety of new customers and for expansions of many existing customer programs. The deployment volumes equate to an approximately 70 percent increase from the prior year second quarter."The company also states that it remains on target to meet its full year guidance of $235 to $245 million in gross billings -- despite the disappointing revenue miss in Q1. * 6 Worst S&P 500 Stocks of 2019 (So Far) The move appears to have worked. PLUG stock gained 9 cents on Wednesday after the press release hit, and a further 8 cents on Thursday. Continuing a Year of Growth for PLUG StockThe failure of hydrogen fuel cells to replace traditional batteries as electric cars gained in popularity walloped PLUG stock, and it's made it things tough for other companies in that market including Ballard Power Systems (NASDAQ:BLDP). PLUG stock price began a recovery after hitting all-time lows of 94 cents in early 2017. The company announced a contract to provide hydrogen fuel cells to the United States Postal Service. In April of last year, Amazon (NASDAQ:AMZN) announced it would buy up to 23% of the company's shares, and would begin using Plug Power fuel cells for forklifts in 11 of its warehouses. AMZN was expected to spend $70 million in 2017 and double that in 2018. That news alone was enough to cause PLUG stock to skyrocket by 73% with high volume as investors honed in on the action.The company still closed out 2018 down 44% on the year, as losses continued and profit remained elusive.However, Plug Power stock has pieced together a solid run so far in 2019, after a precipitous drop last year saw it collapse from $1.75 at the end of November, to as low as $1.01 before Christmas. The losses continue -- and that disappointing Q1 was a setback for PLUG stock -- but there has been a steady stream of positive news for the company.In April, Fedex (NYSE:FDX) decided to adopt Plug Power fuel cell technology in some of its airport ground support equipment. In May, the company announced a partnership that will see 100 electric vehicles equipped with Plug Power hydrogen fuel cell engines join the DHL delivery fleet in 2020. In June, it announced the acquisition of EnergyOr, gaining access to the market for hydrogen fuel cell technology in robotics and UAVs.Then there was Wednesday's announcement of the record Q2 expected in August. Media is also starting to connect dots, which is working in Plug Power's favor -- at least in terms of visibility and positive news. Yesterday, the Albany Business Review published an article suggesting that a new law passed the previous week by New York state could be a big win for Plug Power. Forcing companies to transition to carbon neutral renewable energy sources for electric power by 2040 means a big opening for hydrogen fuel cell technology.Asked to comment, Plug Power's CEO noted "Anything that drives reduction in greenhouse gas in the transportation sector is good for Plug." He also predicted the New York plan could create a $10 billion market for hydrogen fuel cells and hydrogen-powered vehicles.With Plug Power targeting $235 to $245 million in gross billings for the year, a $10 billion market in its home state would be a big prize. The question is whether and when the company will be able to leverage all of these opportunities and turn them into profitability. * The 7 Top Small-Cap Stocks Of 2019 Investors are growing impatient. But for now, the overall PLUG stock trajectory for 2019 has been upward. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post PLUG Stock Spikes on Predictions of a Record Quarter appeared first on InvestorPlace.
"Anything that drives reduction in greenhouse gas in the transportation sector is good for Plug," says Andy Marsh, the CEO of the fuel cell manufacturer based in Latham. Plug has been making a push into the on-road vehicle market, outfitting trucks for delivery services.
The first half of the year is often a slower for Plug — and the first quarter of 2019 was especially weak, with revenues of around $18.6 million, missing projections. But Plug has teased growth would come in the later quarters of the year, along with four big announcements.
Plug Power Inc. (PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, today highlights record numbers as the close of the 2019 second quarter approaches. The Company remains on track to set a record quarter in Q2 for units produced and deployed in any second quarter in its history. In the second quarter 2019, Plug Power is on track to deploy approximately 2,000 fuel cell units to a variety of new customers and for expansions of many existing customer programs.
Plug Power Inc. (PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, today announced that it will participate in the 2019 Ohio Fuel Cell Symposium in Columbus, OH. The event is produced by the Ohio Fuel Cell Coalition, an organization designed to accelerate the region’s leadership in fuel cell technology.
Plug Power (NASDAQ:PLUG) has had a long and unsuccessful run on the capital markets. Plug stock started trading in 1998 around $120 per share (split-adjusted) and ran up to as high as $1,500 per share over the next couple of years.But the price collapsed shortly thereafter and has never recovered. Shares dropped under $10 in 2008, and PLUG stock would fall to as low as 13 cents earlier this decade. In 2014, PLUG stock briefly spiked to $10, but that rally failed as well and shares are back down to $2 now.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis is a classic sort of boom and bust trading pattern of many small NASDAQ companies. They labor on for many years, hoping to commercialize some new or improved technology with limited success.Plug Power fits the mold. It has been able to generate a fair amount of revenue over the years. But it has never reached a point of achieving consistent profits; in general, its margins have been too low for the business to ever take off. * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 Huge Ongoing LossesDespite scaling up its revenues dramatically, there is little evidence that Plug Power is about to become a viable profitable business. From 2013 to 2018, Plug Power has increased its revenues from $25 million to $175 million. Gross profit, however, only flipped from a small loss to a gain of $2.6 million in 2018.Normally, if revenues go up sevenfold, you'd expect it to do more for your profit margins. Making $2.6 million in profit on your goods sold off of $175 million is rather lackluster.The company spends about $40 million per year on overhead. On top of that, it is spending around $30 million per year on R&D. Thus, while it only makes a gross profit of less than $3 million, it has more than $70 million in other costs that it has to fund each year to keep the business operating and competitive.Throw in more expenses, such as interest on the company's rising debt load, and annual losses approach $100 million per year. This figure has been spiking upward recently, even as revenues have gone up dramatically.As such, there's simply not much evidence that Plug Power's current business model is anywhere close to a trajectory needed to eventually become a solid business for PLUG stock owners. Hydrogen Still Is an Issue for Plug PowerThere are niche markets where hydrogen fuel cells are already practical products with viable use cases. But much of the enthusiasm for this sort of stock comes from the idea that hydrogen is going to go mainstream. Some folks, such as the people who publish Capitalist Exploits suggest that hydrogen is about to take off.They say hydrogen stocks will boom over the next five to ten years and investors have to get in now before the market surges.I don't buy their argument. If you read the full report, much of it is about the potential for future hydrogen fuel cell usage in mass markets such as transportation vehicles. But this market has already existed, to a limited extent, for the past decade and is showing little sign of reaching an inflection point now.If anything, electric vehicles are making it harder for hydrogen to take off. How many alternatives to internal combustion engine vehicles is the market going to support at once?It's worth considering that we've seen this movie before. A decade ago, billionaire Boone Pickens heavily pushed natural gas-powered vehicles. The Clean Fuels (NASDAQ:CLNE) company was a multi-billion market cap outfit that intended to take natural gas cars mainstream. It didn't work out, however. Despite natural gas fuel being both cheaper and cleaner than gasoline, the savings weren't sufficient to cause a mass shift.Hydrogen faces many more obstacles than natural gas did in trying to go mainstream. Hydrogen is more dangerous - see this station blowing up recently, for example, which led Toyota (NYSE:TM) to stop selling its hydrogen models. Stations using hydrogen cost much more to build than gas stations or electric charging facilities. And outside of a few markets like California, there isn't enough hydrogen infrastructure in place. PLUG stock could get a big boost if hydrogen vehicles get popular. But I'd bet heavily that they won't over the next few years. PLUG Stock VerdictCompetitor FuelCell Energy (NASDAQ:FCEL) got rid of its CEO and hired a restructuring firm earlier this month. That strongly implies the possibility that FuelCell will be going bankrupt shortly. That's even with them announcing a new deal with ExxonMobil (NYSE:XOM) recently. FCEL stock is down to 22 cents, and has lost 99% of its value over the past year.FuelCell's collapse has served as another reminder of the difficulty of taking hydrogen mainstream. There's a huge difference between having a cool technology that works in a lab, and having something that you can sell in the mass market profitably.Now, Plug Power isn't about to follow FuelCell's path. At least not yet. Plug Power's market cap is still over $500 million, meaning that it has plenty of ability to keep issuing new shares to fund its ongoing losses. Still, one must wonder how long the market will keep tolerating Plug Power's unending string of massive cash burn.After twenty years on the public markets, it's increasingly hard to think that the company's business model will ever turn into a significant success for its shareholders.At the time of this writing, Ian Bezek owned XOM stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Revenue Numbers Aside, There's No Good Reason to Buy PLUG Stock appeared first on InvestorPlace.
Many publicly traded companies have fallen from grace. But few have done it as dramatically as hydrogen fuel-cell maker Plug Power (NASDAQ:PLUG). PLUG stock debuted on Wall Street in 1998 -- in the early innings of the tech bubble- - at $120. By the peak of that bubble in 2000, shares were trading near $1,500.Today, the PLUG stock price trades hands at $2 and change. That is quite literally a 99.9% wipe-out in value over the past two decades.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhat's up with Plug Power stock today? The company is pushing forward on the hydrogen fuel-cell front with mixed success. On one end, revenues and billings are growing rapidly because of more widespread deployment of commercial hydrogen vehicles. On the other end, the consumer market remains sluggish while margins remain depressed. Plus, the company continues to lose a bunch of money, all against the backdrop of a debt-burdened balance sheet.The result is that while Plug Power stock has more than doubled from its late 2018 lows, it trades roughly flat with where it was a year ago. The implication? Things are getting better for shares in the near term. But in the big picture, they aren't getting that much better.Zooming out, this should remain the trend for Plug Power for the foreseeable future. Things probably will get better. But again, not that much better. The problem is PLUG stock is already priced for better. Thus, unless things improve significantly soon, the equity doesn't look that appetizing at its current levels. The Optimist's Case for PLUG StockPlug Power makes hydrogen fuel-cells which power hydrogen cars. * 7 Value Stocks to Buy for the Second Half The technology here is pretty complex. Generally, PLUG develops hydrogen and oxygen-based platforms to power vehicles of all shapes and sizes. This technology contrasts sharply to cars using gasoline or plug-in electricity.The benefit relative to gasoline? Hydrogen is cleaner, and in greater abundance. In terms of comparative advantages against electric vehicles, hydrogen lasts longer. Plus, hydrogen cars take less time to "re-fuel" than their plug-in EV counter parts.Despite those benefits, the hydrogen car market has remained broadly sluggish for several years. Why? Because hydrogen cars are significantly less efficient than their EV and gas-powered peers. Moreover, a lack of infrastructure which supports hydrogen cars (unlike the rapidly sprawling plug-in EV infrastructure) stymies progress.Consequently, hydrogen cars have failed to gain mainstream consumer traction. Total hydrogen car sales in the U.S. measured less than 1% of total EV sales, and were basically flat year-over-year.Still, commercial adoption of hydrogen vehicles has been much more encouraging because commercial EVs lack adequate range. This is where Plug Power is currently making a killing. Their acumen with hydrogen-based vehicles eventually attracted partnerships with blue-chip giants like Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN).This market should continue to grow over the next several years. First, governments increasingly pressure companies with emissions requirements, and hydrogen provides a ready-made solution. Second, EV tech, despite best efforts, continues to have range limitations.As the hydrogen market grows, Plug Power's billings, revenue, and margins should improve. Within the next five years, this company could actually be consistently profitable. And that might improve the long-term outlook for the PLUG stock price. Don't Get Carried Away with Plug Power StockThanks to more widespread commercial adoption of hydrogen cars, the fundamentals underlying Plug Power stock should improve. But the improvements will likely be incremental, meaning you shouldn't gamble too heavily on these shares.One significant headwind is that the consumer-level hydrogen market was and is still sluggish. That's not going to change anytime soon. Lower efficiency and a lack of infrastructure are big challenges here which will ultimately limit sector growth.And without consumer-market growth, Plug Power stock isn't a buy here. Right now, management is guiding for approximately $500 million in bookings in the intermediate term on roughly 20% EBITDA margins. Reasonably speaking, that combination should produce about 25 cents in earnings per share.Given the current growth trajectory, the company can realistically hit that figure by fiscal 2023. Based on a market average 16-forward multiple and a 10% discount rate, that equates to a 2019 price target for Plug Power stock of roughly $3.That's not much higher than where the PLUG stock price trades today.To be sure, the consumer market could turn into a big growth market at some point in the future. If that happens, Plug Power's growth narrative will dramatically improve, and this trajectory will accelerate higher. Long-term EPS targets will move well above 25 cents. Therefore, PLUG stock could reasonably soar to levels far north of $3.But consumer-market growth isn't happening now, nor does it project to happen anytime soon. As such, you should probably avoid PLUG stock for the foreseeable future. Bottom Line on PLUGWhen it comes to Plug Power, it's all about the consumer hydrogen car market. If or when that market starts to gain mainstream traction, PLUG stock will shoot higher. Until that happens, though, shares will remain depressed.For the foreseeable future, the consumer hydrogen car market projects to remain sluggish, which means that Plug Power stock isn't worth buying, yet.As of this writing, Luke Lango was long WMT and AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Why Plug Power Stock May Not Be Worth The Risk … Yet appeared first on InvestorPlace.
Plug Power Inc. (PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, has again been named to the Top Green Providers list for 2019 by Food Logistics, the only publication exclusively dedicated to covering the movement of product through the global food supply chain. Food Logistics’ annual Top Green Providers recognizes companies whose products, services, or exemplary leadership are enhancing sustainability within the food and beverage industry. 2019 marks the third year Plug Power has been named on the Top Green Providers list.
In early May, I addressed whether investors should buy or sell Plug Power (NASDAQ:PLUG) before it released first-quarter results. Through the first four months of 2019, PLUG stock had doubled in price. That left those who bought at the end of 2018 with a difficult choice.I concluded that if you bought Plug Power stock for a long-term hold of three to five years, you should hold through earnings. If shares dropped by a significant amount, the volatility would offer a discounted opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe day of the article, the PLUG stock price closed at $2.46 a share. On May 8, it announced less-than-stellar earnings that sent shares down as low as $2.16 the next day. However, it has since recovered all of those losses and then some.That's good news.The bad news is that I no longer feel comfortable recommending Plug Power stock to anyone but speculators. Here's why: The Q1 2019 Earnings Report Wasn't GoodIn the first quarter, Plug Power saw revenues decline by 30% year-over-year to $18.6 million. The company has five items included in total revenue. * 7 Stocks to Buy for the Coming Recession In Q1 2019, the sale of fuel-cell systems was less than half what it was a year earlier; it had no sales of hydrogen installations compared to $4.6 million a year earlier. The company's revenues are highly variable and tough to predict.Analysts expected revenue of $34.5 million. If the professionals missed by almost $16 million, how can regular investors possibly think they've got an edge on them? I don't think they do, which makes Plug Power stock especially treacherous. The Earnings Report is a Tough ReadPlug Power CEO Andy Marsh blamed the poor results on sales that closed after the end of Q1. The company's quarterly press release stated:While gross billings were down year over year in what is our seasonally lowest quarter, it is important to note that these numbers were negatively impacted by end of quarter project timing around revenue recognition. This is reflected in our higher quarter end inventory balance of $65.5M compared to quarter-end inventory of $47.9M in Q4 2018.It went on to say that the timing affected gross billings by $10 million. If you add those back, Plug Power increased gross billings by 15.9% in Q1. In Q2, it expects gross billings to grow by more than 100% from $22.8 million in the first quarter.As a company, I believe Plug Power's got tremendous potential. However, unless you're very good at handling volatility in earnings and sales, the company's revenue model is too darn complicated. It also lends to an unpredictable profile for the PLUG stock price longer term.For example, the sale of power purchase agreements (PPAs) and services are recognized as revenue over five to seven years. That means the variability in its revenues -- these two line items accounted for 59% of Q1 2019 sales -- will never go away. It Doesn't Make MoneyAs I stated in early May, although Plug Power isn't profitable, it's getting closer on a non-GAAP basis.In Q1, its adjusted EBITDA loss was $6.7 million, 33.5% lower than in the same quarter a year earlier. In fiscal 2018, Plug Power's adjusted EBITDA loss was $17.5 million, 46.7% lower than in 2017.That's all very good, but you can't pay your bills with almost making money. You either are, or you're not.For investors who are using tax-deferred or tax-free accounts to invest in Plug Power stock, you're making a critical mistake. That's because if you take a loss on PLUG shares, you can't utilize the capital loss against other gains.Therefore, it makes sense to limit your retirement accounts to companies that at least make money. The Bottom Line on PLUG StockPlug Power is doing some fantastic things. That's why companies like Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) are buying a ton of product from them. If you must own PLUG stock within a retirement account, I'd do it through Amazon. If you're an aggressive investor accustomed to risk, I'd continue to buy it whenever it drops below $2.25.Long-term, I think it will make money, but we won't know for sure until it does. For now, PLUG stock is simply a vehicle for the speculators.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post PLUG Stock Has Great Potential, But That Wonat Pay the Bills appeared first on InvestorPlace.