Key Points
Plug Power (NASDAQ: PLUG), a developer of hydrogen charging technologies, saw its stock price plummet from an IPO-adjusted $150 to about $2 as of now. The company primarily generates revenue by selling hydrogen fuel cells and charging systems, notably for Amazon (NASDAQ: AMZN) and Walmart (NASDAQ: WMT), its largest investors. Plug Power has deployed 72,000 fuel cell systems and 275 fueling stations across the U.S.
Although revenue increased by 40% in 2022 and 27% in 2023, growth was largely driven by acquisitions rather than organic expansion, and revenue is expected to decline by 29% in 2024. Its operating margin has dropped dramatically from -97% in 2022 to -321% in 2024, indicating sustainability concerns. The company holds a market cap of $2.9 billion but faces potential loss of a $1.7 billion loan guarantee from the U.S. Department of Energy, complicating future growth prospects.
Looking forward, analysts project a 12% revenue increase in 2025 and a CAGR of 23% over the next two years as the green hydrogen market stabilizes. Plug Power is ramping up operations in Texas and Georgia and has formed a joint venture in Louisiana for a new hydrogen plant. However, industry challenges remain, raising doubts about a significant stock recovery unless U.S. policy shifts favorably.
