What Happened?
Shares of fuel cell technology Plug Power (NASDAQ: PLUG) fell 6.5% in the afternoon session after an analyst at B. Riley lowered their earnings estimates for the company. The research firm reduced its second-quarter 2025 earnings per share (EPS) forecast for Plug Power, anticipating a loss of ($0.15) per share, down from a previous estimate of a ($0.12) loss. This more pessimistic view on the company's upcoming earnings adds to persistent investor concerns surrounding Plug Power's financial health and its challenging path to profitability.
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What Is The Market Telling Us
Plug Power’s shares are extremely volatile and have had 102 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 20.8% on the news that it announced a new multi-year enhanced supply agreement with a major U.S.-based industrial gas partner. The agreement, which extends the partnership through 2030, is set to secure a reliable supply of liquid hydrogen for Plug Power's growing business. More importantly for investors, the deal will immediately lower costs and is expected to improve the company's cash flow and margin profile. Plug Power, a leader in hydrogen fuel cell technology, has been focused on scaling its operations and achieving profitability. This extended agreement is a crucial step, ensuring a stable hydrogen supply for its more than 275 customer sites while also addressing cost-efficiency, a key concern for the company. CEO Andy Marsh called the contract a "win for Plug, our customers, our suppliers and our margin profile," highlighting the immediate cost reduction benefits.
Plug Power is down 33.5% since the beginning of the year, and at $1.55 per share, it is trading 53.6% below its 52-week high of $3.34 from July 2024. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $179.18.
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