1 Reason I Haven't Bought Plug Power and Probably Never Will

Company Overview - Plug Power has been in operation since 1997 and went public in 1999, but it has not yet achieved profitability or consistent growth [2] - The company generated $145 million in revenue in the first half of 2024, with sales declining over 50% year-over-year [2] - Plug Power reported a net loss of $558 million in the first half of 2024, an increase from a $443 million loss in the same period of 2023 [2] Financial Performance - Plug Power's heavy investments in its green hydrogen ecosystem have led to significant cash burn, with capital expenditures totaling $194 million in the first half of 2024 [3] - The company's cash balance decreased to $1 billion by the end of June 2024, down from $1.5 billion in June 2023 [3] - The issuance of new shares to cover losses has resulted in a substantial dilution of existing investors, contributing to a 98.5% decline in stock value since its IPO [3] Future Outlook - Analysts project Plug Power's revenue to exceed $2 billion by 2026, but anticipate an operating loss of $250 million for that year [4] - The company aims to achieve $20 billion in revenue by 2030, with a target gross margin of 35% and potential net profits of up to $3 billion annually [4] - Achieving these ambitious goals will depend on a surge in hydrogen demand and the company's ability to secure funding in the interim [5] Investment Considerations - Plug Power's ongoing financial struggles and the need for continued stock issuance raise concerns about its ability to stabilize its share price [6] - The company's potential for growth in the green hydrogen sector is overshadowed by its current losses and the risk of further dilution for investors [6]