Why Plug Power Stock Tumbled 35% in August
Plug Power (NASDAQ: PLUG) stock's 26% run-up in July after a precipitous fall in the earlier months led many investors to believe that the stock had bottomed. That euphoria didn't last long, though. Shares of the hydrogen fuel cell manufacturer gave up all those gains and then some in August, slumping by 35.5%, according to data provided by S&P Global Market Intelligence.
With Plug Power bagging several supply deals for electrolyzers in recent months, including a couple in July, investors may have believed the loss-making company could turn cash-flow-positive sooner than previously expected. The quarterly numbers the company released in August suggest otherwise.
Plug Power generated record quarterly revenue of $260 million in the second quarter. Revenue was up 72% year over year thanks to new hydrogen installation sites and strong demand for fuel cell systems. Management also reaffirmed its outlook for 2023 revenue of $1.3 billion at the midpoint of its guidance range, which would amount to 85% growth over 2022.
Source Fool.com
