Plug Power stock plunges on potential $1B share offering
Shares of Plug Power (PLUG) fell as much as 17% in extended hours after the company filed for a potential $1 billion share offering. The company is down over 88% over the last two years.
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Editor’s note: This article was written by Nicholas Jacobino
JOSH LIPTON: Check out shares of Plug Power here, they are plunging in the after-hours trading. The company files for $1 billion share offering. So the headlines here, Madison, files for possible offering of shares B via B, Riley, and shares are taking a hit here, they’re down about 16% in the after hours.
Of course, this stock has been a mess for a while. It is actually down about 80% in the past 12 months. It’s down about 40% just so far this year. You would think that would bake in a lot of bad news, but actually, if you look at analysts covering the name, most clearly don’t think so, because they’re still on the sidelines here, even after that kind of nosedive.
MADISON MILLS: Yeah, it’s interesting. This is another one of those companies impacted by higher interest rates, those flatten utility prices, change metering, net prices as well. And we’re seeing that impact, not just names like Plug Power, but also I’m thinking Enphase Energy, SunPower as well, that stock is not yet active but down 79% in the last 12 months.
And reminder here just about what Plug Power does, their focus is the development of hydrogen fuel cell systems that replace conventional batteries. So this is a climate-friendly play, but the demand is just not there. Interesting to note, though, the company’s top customer is Amazon, that generated about 15% of its sales previously. So I’m curious to find out what strategy change happened at Amazon, and how that read through to what we’re seeing in terms of Plug Power’s performance.
JOSH LIPTON: Yeah. We had seen some bulls moving to the sidelines. By the way, recently, they talked about near-term uncertainty around financing, around gross margins. You had seen some folks take down their rating heading into that news.