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Plug Energy (NASDAQ: PLUG) inventory has been tumbling ever because it reported its third-quarter leads to early November. A brand new announcement at the moment has the inventory dropping even additional. Plug shares had been buying and selling close to the day’s low, down by 10.2% as of 12:40 p.m. ET.
With at the moment’s drop, Plug Energy inventory has plummeted by almost 50% in simply the final two months.
Is dangerous information on the way in which?
In its third-quarter report, the corporate said, “[W]e proceed to incur losses and may by no means obtain or keep profitability.” It additionally issued a “going concern” warning, which lets buyers know there is a risk that it’s going to not survive as a enterprise.
Plug mentioned its hydrogen enterprise has been impacted by supply-chain disruptions, a excessive inflation and interest-rate surroundings, and financial uncertainty world wide. It additionally famous that it could want to boost extra capital.
Traders appeared to get spooked at the moment when the corporate introduced CEO Andy Marsh will maintain a enterprise replace convention name together with Chief Monetary Officer Paul Middleton subsequent week.
The funding case stays shaky
Nobody is aware of if subsequent week’s replace will probably be good or dangerous information. The corporate might report that supply-chain disruptions are easing and it is completely happy that it is progressing in the proper route. However Plug Energy has underperformed on its income expectations lately.
Although the corporate has slowly however steadily been growing income, the $200 million in income reported within the third quarter was down from $260 million within the prior quarter. Traders had been very dissatisfied by that report and the be aware that Plug may have to boost extra capital.
Subsequent week’s replace will go a great distance towards figuring out the following route for the inventory. There is no use in speculating, nonetheless, and a few buyers in all probability determined to maneuver to the sidelines at the moment.
Must you make investments $1,000 in Plug Energy proper now?
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Howard Smith has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
Why Plug Energy Shares Plunged Once more At this time was initially printed by The Motley Idiot
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