Plug Power's Paradox: Skyrocketing Revenue and Mounting Losses
Plug Power (NASDAQ: PLUG) is a rapidly growing hydrogen fuel cell company that's also burning through its cash reserves at a rapid pace. While the future of fuel cells looks bright, and Plug Power is a solid leader in its chosen field, investors should fasten their seat belts because the road ahead is full of potholes.
In the first quarter of 2023, Plug Power reported revenue of $210 million, up 49% year over year. However, the company's cost of revenue -- another name for the more commonly seen cost of goods sold (COGS) -- is a substantial portion of its expenses.
Actually, that expense is larger than the incoming revenue. COGS was $350.4 million, resulting in a gross loss of $69.4 million.
Source Fool.com
