Plug Power (NASDAQ:PLUG) stock rose 13% on June 12 as it said sales will come out ahead of estimates. The company plans an “Analyst Day” tomorrow, June 14.
Plug Power produces hydrogen and hydrogen fuel cells.
The latest move takes the stock to roughly $10.75/share entering trading this morning, June 13. PLUG’s market capitalization is nearly $6.3 billion on 2022 sales of $701 million. The company claims it can achieve revenue of $1.4 billion this year.
Hydrogen Boom?
Plug Power is known for “green hydrogen,” made without natural gas. In addition to producing hydrogen, Plug Power transports, dispenses, and makes fuel cells that use it. Hydrogen fuel cells have found a profitable niche in warehouses because water is the waste product from putting hydrogen and oxygen together.
Plug Power stock rose recently after it sold a hydrogen-fueled backup power system to Energy Vault (NASDAQ:NRGV) that will replace diesel generators in Calistoga, California.
Analysts now expect the green hydrogen market to explode over the next few years, from $676 million in 2022 to as much as $7.3 billion in 2027. Most producers are units of larger conglomerates like Siemens (OTCMKTS:SIEGY), Toshiba (OTCMKTS:TOSYY), and Cummins (NYSE:CMI). Plug Power makes hydrogen its only business.
Plug Power had revenue of $210 million for the quarter ending in March, up 49% from a year earlier. Its net loss, however, was $206 million. The company insists its pipeline of upcoming projects will lead to profitability.
The company’s Investor Day will feature a peak into one of those potential profit centers, a “gigafactory” near Rochester, New York, that opened in April.
Some analysts remain skeptical of Plug Power’s claims. Shares traded as high as $44 each in late November 2021, and some of its deals remain no more than memorandums of understanding.
PLUG Stock: What Happens Now?
PLUG stock remains a speculation until the company can demonstrate profits, not just growth. It is still some distance away from there.
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.
