important
PLUG: Plug Power Stock Crashes 40% on Sales Miss, Concerns Over Staying Solvent
The hydrogen company is desperately seeking funding and floated the possibility of going off the grid if new investors don’t show up next year.
- Plug Power stock PLUG lost power on Friday after the company revealed a disappointing third-quarter earnings data. Plug shares crashed 40% on the day on $200mn in sales, a little less than Wall Street’s consensus call. And a stark warning the hydrogen-technology company might not make it.
- Plug now needs to pick up $500mn in fourth-quarter revenue if it is to meet its 2024 sales forecast of $1.2bn to $1.4bn. But supply chain issues and inflationary squeezes are threatening to throw the company into bankruptcy, the September-quarter report said. Asset liquidation or additional funding may be the way out of the crunch.
- Analysts anticipate that Plug may need an extra $750mn or more over the next 12 months so it could secure enough liquidity to resume its operations without significant shake ups. Shares of Plug are down over 70% on the year to trade at a little more than $3 a piece.