1. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders In Q2 2024: 15
Short Interest % of Shares Outstanding: 28.39
YTD Share Price Loss: 54.6%
Plug Power Inc. (NASDAQ:PLUG) is a clean energy company that focuses on products that use hydrogen. As a result, it’s unsurprising that the stock is down 56% year to date as the broader clean energy sector has struggled. Hydrogen is a relative niche in clean transportation products, which doesn’t bode well for Plug Power Inc. (NASDAQ:PLUG) as capital for the industry dries up. This slowdown is also evident in Plug Power Inc. (NASDAQ:PLUG)’s financials, as the firm’s loss widened to $262 million in Q2 from $236 million in the year ago quarter. Additionally, investors have also factored in a potential change in the US Administration after the November election, which could affect government support for the company’s projects. Plug Power Inc. (NASDAQ:PLUG)’s shares have been troubled in 2024 as a $200 million equity offering caused a 10% drop in July. It dipped by another in August after second quarter revenue was $143 million and loss per share was $0.36, both of which missed FactSet estimates of $185 million and $0.31. Given that analysts expect Plug Power Inc. (NASDAQ:PLUG) to hit profitability in 2028 after it generates $4 billion in revenue, the headwinds are unsurprising.
Plug Power Inc. (NASDAQ:PLUG)’s management shared key details about its revenue during the Q2 2024 earnings call:
“Looking at Q2, more specifically, we have made progress on our sales, cost down and cash management initiatives. And I would highlight as an example, the level of electrolyzers deployed, which represents a clear inflection point on this ramping activity. But these new nascent offerings with nuanced commercial contracts and products being used in much larger customer project deployments makes it challenging on the timing on revenue recognition. On a positive, as Andy mentioned, for the majority of the programs deployed where the revenue will be recognized in the second half, we’ve already delivered. We’ve transferred the title and collected most of the cash via milestones. So this is truly a factor of timing. In addition, this large quantity of programs provides a substantial base of experience and insight to accelerate deployments based on learnings and the ability to constructively improve commercial terms to benefit the company financially and to enhance the accounting of these activities.”
PLUS is the worst falling stock to buy. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PLUG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. All investment decisions should be made after consulting a qualified professional. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
