Why Plug Power Inc Shares Are Plunging
Portfolio Pulse from Erica Kollmann
Plug Power Inc. (NASDAQ:PLUG) shares plummeted after reporting Q3 financial results that missed analysts' expectations. The company posted a loss of 47 cents per share, significantly higher than the expected 30 cents, and a 56.67% increase from the previous year. Revenue also fell short at $198.71 million against the expected $237.92 million. Plug Power expressed concerns about its ability to continue as a going concern, citing insufficient funds to sustain operations for the next year without additional financing. Analysts from RBC Capital, Truist Securities, and Susquehanna have downgraded their ratings and price targets for PLUG. The stock experienced heavy trading with over 62.3 million shares traded, compared to the 100-day average of 21.349 million shares, and a 24.22% short interest.
November 10, 2023 | 3:40 pm
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NEGATIVE IMPACT
Plug Power Inc. reported disappointing Q3 results with a larger-than-expected loss and lower revenues, leading to a significant drop in its stock price. The company also raised concerns about its ability to continue as a going concern.
The negative earnings report, coupled with the company's statement about its going concern status, has led to a loss of investor confidence and a downgrade by analysts. This is likely to put downward pressure on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100