Shares in hydrogen company Plug Power (NASDAQ:PLUG) stock fell 4.7% overnight after announcing disappointing quarterly results.

This followed a 5% fall in trading on May 8. Plug Power opened today at about $2.40 per share, a market capitalization of $1.66 billion.

Pulling the Plug

For the quarter ending in March, Plug Power reported a loss of $296 million, 46 cents per share. Revenue was just $120 million. Revenue was down over 43%, and losses were up 43% from a year ago. The company ended the quarter with just $173 million in cash and $220 million of what it called “restricted cash.”

Management blamed seasonal factors for the shortfall, saying two-thirds of revenue will come in the back half of the year.

Goldman Sachs analysts were not amused. The investment firm warned that rising interest rates mean investors are more skeptical of highly leveraged companies like Plug Power. Fellow InvestorPlace contributor Josh Enomoto noted that analysts were also expecting revenue to rise, not fall.

Plug Power has been troubled for some time because its “green hydrogen” must compete directly with hydrogen derived from natural gas. There is also “white hydrogen” underground. Piper Sandler cut its rating on the stock to underweight in December.

Plug Power also issued a “going concern” warning in 2023, which was lifted only recently.

Even in the go-go days of 2021, Plug Power stock was considered a long-term play. It seeks to create an entire hydrogen fuel ecosystem, making the equipment to create and use it, as well as distribution infrastructure.

Hydrogen fuel cells have found a niche with warehouse forklifts. They can run all day without being refueled and don’t emit fumes like gas engines. Hydrogen can also be used to create ammonia, not just power.

But despite winning some big contracts, Plug Power continues to report big losses. It must make up for these losses by selling new stock. Promises made at its Investor Day last summer have not panned out.

PLUG Stock: What Happens Next?

The hydrogen market may not develop quickly enough to save Plug Power. Another fellow InvestorPlace contributor, Terel Miles, recently suggested selling the stock.

On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.