Why Plug Power (PLUG) Is Among Tuesday’s Worst Performers?

We recently published a list of 10 Stocks Nosedive, Defying Broader Optimism. In this article, we are going to take a look at where Plug Power Inc. (NASDAQ:PLUG) stands against other stocks nosedive, defying broader optimism.

Ten companies—predominantly Bitcoin miners—kicked off this week’s trading on a sour note, bucking an overall market optimism, following the lack of fresh developments to spark buying appetite.

On Tuesday, the Dow Jones rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.

In this article we will look at Tuesday’s worst performers and explore the reasons behind their drop.

To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A generator being fueled and readied for use as part of an end-to-end green hydrogen ecosystem.

Plug Power Inc. (NASDAQ:PLUG)

Plug Power Inc. (NASDAQ:PLUG) fell by 9.84 percent on Tuesday to end at $2.20 apiece following news that it is being subject to an investigation concerning potential breaches of fiduciary duties by certain directors and officers of the company.

The investigation, launched by a law firm representing current long-term investors in Plug Power, stems from a lawsuit filed against Plug Power Inc. (NASDAQ:PLUG) over alleged violations of securities laws. The inquiry is focused on whether specific company directors are liable for actions related to the claims outlined in the lawsuit.

Filed in the US District Court for the Northern District of New York, the complaint accused the company of making false or misleading statements and failing to disclose key issues such as allegations that Plug Power overstated its ability to mitigate the negative impacts of supply chain constraints and material shortages on its hydrogen business.

The suit also highlighted concerns about the sufficiency of the company’s cash reserves to fund operations, delays in its green hydrogen production facility build-out, and challenges in securing external funding to support its growth initiatives.

Overall, PLUG ranks 5th on our list of stocks nosedive, defying broader optimism. While we acknowledge the potential of PLUG as an investment, our conviction lies in the belief that 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.

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Disclosure: None. This article is originally published at Insider Monkey.