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Why Plug Power Stock Slumped Another 13% in February
PLUGPlug Power(PLUG) The Motley Fool·2025-03-07 18:43

Group 1 - Plug Power's new hydrogen plant in Louisiana is set to start operations in the first quarter, but the stock has fallen 13.4% in February following a similar decline in January [1][2] - The company anticipates revenue growth of 4% to 16% in the first quarter, but is also implementing cost-cutting measures and has not provided guidance for 2025 [2][6] - Plug Power has secured a 1.66billionloanguaranteefromtheDepartmentofEnergytobuilduptosixgreenhydrogenplants,butfundingisuncertainduetotheTrumpadministration′sfreezeoncleanenergyfunding[3][4]Group2−Thecompanyislookingforinvestorsfornewprojectsandplanstoreduceworkforce,discretionaryspending,andcapitalexpendituresunderitscost−cuttinginitiativenamedProjectQuantumLeap,aimingtosave1.66 billion loan guarantee from the Department of Energy to build up to six green hydrogen plants, but funding is uncertain due to the Trump administration's freeze on clean energy funding [3][4] Group 2 - The company is looking for investors for new projects and plans to reduce workforce, discretionary spending, and capital expenditures under its cost-cutting initiative named Project Quantum Leap, aiming to save 150 million to 200millionannually[4][5]−PlugPowerreportedanegativegrossmarginof122200 million annually [4][5] - Plug Power reported a negative gross margin of 122% and a significant impairment of 971 million in the fourth quarter, indicating challenges in market demand and overall market dynamics [6]