Plug Power, a hydrogen fuel cell company, is struggling with profitability after incurring losses totaling over $2.1 billion over the past four quarters. Despite this, its new CEO, Jose Luis Crespo, aims to get the company’s operating income into the black within a few years.
While green energy stocks are gaining popularity due to rising population growth and artificial intelligence needs, Plug Power’s situation is uncertain. The company has been in financial trouble for several years and has warned investors about its potential survival issues.
Crespo believes he can turn the business around by focusing on the electrolyzer market and reducing plans for hydrogen factory construction. However, investors should be skeptical of his projections due to the company’s poor operating margin and lack of positive gross margins over the past four quarters.
The stock has declined by 92% in the past five years, and investors have largely given up on it due to its continued losses. The U.S. government’s cancellation of clean energy projects may further hinder Plug Power’s efforts to achieve profitability.
Before investing in Plug Power, consider that another top analyst team, such as Stock Advisor, did not include it in their list of recommended stocks. This raises questions about the company’s chances of success and whether investors should wait on the sidelines for significant improvements in its financials.
Source: https://www.nasdaq.com/articles/plug-powers-new-ceo-aims-make-company-profitable-2028-how-likely-happen