What Happened?
Shares of fuel cell technology Plug Power (NASDAQ: PLUG) fell 5.1% in the afternoon session after investors looked past its in-line third-quarter revenue and earnings beat to focus on the company's underlying profitability challenges. For the quarter, Plug Power reported revenue of $177.1 million, which was in line with analyst expectations, and an adjusted loss per share of $0.12, which was narrower than the anticipated $0.13 loss. However, the positive headline figures were overshadowed by deepening operational losses. The company's operating margin worsened significantly, indicating that expenses outpaced sales growth. Furthermore, Plug Power's gross margin remained deeply negative, and while its cash burn improved year-over-year, it still used $127.3 million in cash during the quarter, highlighting ongoing concerns about its path to sustainable profitability.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Plug Power? Access our full analysis report here.
What Is The Market Telling Us
Plug Power’s shares are extremely volatile and have had 99 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 27 days ago when the stock dropped 4.9% on the news that a recent, massive rally gave way to profit-taking as investor focus returned to the company's persistent financial challenges. The stock's decline followed a 150% surge over the previous month. That rally was sparked by positive news, including a financing deal that eased immediate solvency worries and the appointment of a new CEO. However, the slide indicated that deeper concerns about the company's financial health persisted.
Plug Power is up 4.1% since the beginning of the year, but at $2.43 per share, it is still trading 41.3% below its 52-week high of $4.13 from October 2025. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $105.43.
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