Can Plug Power (PLUG) Stock Beat The Market?
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By Matt DiLallo – Dec 16, 2025 at 6:15PM ESTKey PointsPlug Power has had a rough time over the past few years.Its operations have lost a lot of money, causing the company to seek outside capital to fund its business and expansion.The company is working to reduce costs and has secured enough funding for its current business plan.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: PLUGPlug PowerMarket Cap$3.1BToday's Changeangle-down(3.15%) $0.07Current Price$2.29Price as of December 16, 2025 at 4:00 PM ETPlug Power has loads of potential.Plug Power (PLUG +3.15%) is a pioneer in the hydrogen industry. It created the first commercially viable market for hydrogen fuel cell technology. It has now deployed over 69,000 hydrogen fuel cell systems and more than 250 fueling stations, more than any other company in the world. Here's a look at whether Plug Power's strategy of becoming a leader in hydrogen has given it the power to beat the market. Image source: Getty Images.
Analyzing Plug Power's returns Plug Power has produced atrocious returns over the past five years compared to the S&P 500: One-year Three-year Five-year Plug Power -6.2% -85% -91.1% S&P 500 12.7% 70.7% 87% Data source: Ycharts. The hydrogen company has lost most of its value over the past several years, woefully underperforming the surging S&P 500. Two factors have contributed to Plug Power's abysmal returns. The company's operations have incurred significant losses. Through the first nine months of this year, Plug Power has posted a net loss of $785.6 million on only $484.7 million of revenue. That's worse than the $769.4 million net loss it recorded during the first nine months of last year on $437 million of revenue. The company has faced challenging operating conditions in the hydrogen market during a period when it has invested heavily to expand its business to capitalize on the future growth it anticipates in hydrogen demand. Advertisement As a result of its deep losses, Plug Power has had to raise outside capital from investors to fund its operations and expansion. It has done that through a variety of ways, including issuing new stock. Those stock sales have significantly diluted existing investors because the company issued new shares at increasingly lower prices. Plug Power's outstanding shares have surged more than 200% over the past five years, which has weighed meaningfully on the share price. ExpandNASDAQ: PLUGPlug PowerToday's Change(3.15%) $0.07Current Price$2.29Key Data PointsMarket Cap$3.1BDay's Range$2.16 - $2.3452wk Range$0.69 - $4.58Volume97MAvg Vol138MGross Margin-7128.74% Can Plug Power beat the market from here? Plug Power has taken several steps over the past year to reduce costs and shore up its funding situation. The company launched Project Quantum Leap earlier this year, a strategy aimed at reducing costs via workforce reductions, facility consolidations, and spending cuts. Plug Power aims to lower its annual expenses by more than $200 million through this initiative. The company has also worked to shore up its liquidity. For example, it has generated over $275 million through the monetization of its electricity rights, secured $399 million in financing via a convertible notes sale, and raised $370 million when an existing investor exercised some of their stock warrants. These moves enabled the company to eliminate high-cost debt and fully fund its current business plan. That business plan would see Plug Power start generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA) as it exits next year. Meanwhile, the company would end 2027 with positive operating income and finish 2028 by finally reaching overall profitability. Plug Power has high risk and high potential Plug Power hasn't come close to beating the market over the past five years. However, the next five years could be a different story. The company's losses are narrowing, and it has secured sufficient financing to fund its strategic plan. If the company successfully reaches profitability by 2028, it could deliver market-beating returns. However, if Plug falls short, investors may face further losses in the coming years. About the AuthorMatt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.TMFmd19X@MatthewDiLalloRead NextDec 16, 2025 •By Leo SunWant $1 Million In Retirement? Invest $50,000 in These 2 Stocks and Wait a DecadeDec 16, 2025 •By Leo SunHow Buying Plug Power Stock Today Could 10x Your Net WorthDec 8, 2025 •By Neha ChamariaPlug Power Stock Slumped 25% in November.
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