Plug Power Stock Plagued By Earnings Miss, Cost Cuts, $280M Capital Raise In March

Plug Power Inc PLUG stock was extremely volatile last month, marked by disappointing earnings, strategic cost-cutting measures and a significant capital raise to bolster the company’s financial position.

What To Know: The hydrogen fuel cell company announced in March that it missed analyst expectations for the fourth quarter of 2024, reporting $191.5 million in revenue versus the projected $263.2 million, per Benzinga Pro.

Despite a 583% year-over-year increase in electrolyzer revenue, the company posted a gross margin loss of 122% and recorded $971.3 million in non-cash impairment charges. 

To address these challenges, Plug launched “Project Quantum Leap,” aiming to cut annual expenses by $150 million to $200 million through workforce reductions, facility consolidations, and discretionary spending cuts. That was enough for investors as the stock sold off and has continued to trend lower since.

J.P. Morgan analyst Bill Peterson reiterated a Neutral rating following the quarter, noting that while Plug could see moderate growth in 2025 through increased electrolyzer deployments and material handling demand, its financial outlook remains uncertain. 

The company also lowered its full-year revenue guidance to a range of $700 million to $800 million, down from prior expectations of $850 million to $950 million.

On March 19, Plug announced a $280 million capital raise through a stock and warrant offering, a move CEO Andy Marsh said would improve liquidity and position the company for long-term profitability. 

Marsh further signaled confidence by opting to receive 50% of his salary in company stock, reinforcing management's commitment to Plug's future. Despite the positive reinforcement, shares continued to move lower, closing out March at the lows for the month.

How To Buy PLUG Stock

By now you're likely curious about how to participate in the market for Plug Power – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Plug Power, which is trading at $1.31 as of publishing time, $100 would buy you 76.92 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

PLUG Price Action: According to data from Benzinga Pro, Plug has a 52-week high of $4.88 and a 52-week low of $1.26. Plug shares have fallen approximately 13% over the trailing month and are down 26.7% since March 7. The stock was hovering around $1.31 at the time of publication Wednesday.