Plug Power stock sinks 10% following annual results

Plug Power Inc (NASDAQ: PLUG) is down 10% in premarket on Friday even though it reported record revenue for 2023.

Why is Plug Power stock down on Friday?

The stock is being punished primarily because hydrogen fuel cells company ended the year with $2.30 of per-share loss ($1.37 billion) – much higher than $1.25 per share in 2022.

Plug Power attributed the inflated loss to “increased investments in growth and expansion and the varied non-cash charges”.

The quarterly report arrives just weeks after the hydrogen fuel cells company committed to lowering annual costs by $75 million as Invezz reported here. $PLUG said at the time that it will lay off a yet to be determined number of employees as part of that initiative as well.

Plug Power stock is now down more than 30% versus the start of this year.

Plug Power saw its revenue jump 27% in 2023

Plug Power did, however, reported a record $891 million in full-year revenue – up 27% versus 2022. Andy Marsh – chief executive of the Nasdaq-listed firm said in a press release today:

We are dedicated in 2024 to bolstering our financial profile. Leveraging existing investments and prudent approach to cash management, we’re well-positioned for sustainable growth and continued innovation in renewable energy.

More importantly, $PLUG confirmed this morning that it has successfully resolved doubt on its ability to continue as a going concern. Wall Street currently has a consensus “hold” rating on Plug Power stock that does not pay a dividend yield at writing.

Note that analysts had forecast the alternative energy to lose $1.58 per share in 2023 on $915.6 million in revenue.