Should You Buy Plug Power Stock While It's Below $2?

Core Viewpoint - Plug Power's stock has significantly declined since its peak in early January, with a loss of over 50% leading up to its earnings report on March 3, where it was trading around $1.50 per share [2]. Financial Performance - Plug Power reported a 45% year-over-year decline in equipment sales (hydrogen fuel cells), indicating weak demand, while fuel sales (hydrogen) increased by 48% from a smaller base, failing to offset the overall revenue drop of 30% from 2023 levels [2]. - The company experienced increased losses at gross (23% more), operating (50% more), and net (54% more) levels, culminating in total losses of $2.1 billion, equating to $2.68 per share [3][4]. - The per-share loss was only 16.5% worse than in 2023 due to a 32% increase in share count from issuing new shares to raise cash [4]. Cash Flow and Financial Strategy - Plug Power reported a negative free cash flow of over $1 billion in 2024, necessitating share sales to maintain liquidity [5]. - The company has initiated "Project Quantum Leap," aiming to reduce annual expenses by $150 million to $200 million through layoffs, consolidations, and other cost-cutting measures [7]. - As of the last report, Plug had approximately $405 million in cash, which is expected to increase to about $685 million following a recent share sale that raised $280 million [8]. Future Outlook - Despite efforts to optimize operations and reduce cash burn, projections indicate that Plug Power may run out of cash before the end of 2025, necessitating further share sales [9]. - The recent increase in shares outstanding to approximately 1.11 billion will likely dilute current investors and could negatively impact stock value, especially if the stock price approaches $2, triggering the exercise of warrants [10].