Plug Power: Some Progress But Major Headwinds Remain - Sell
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Henrik AlexInvesting GroupFollow5ShareSavePlay(8min)CommentsSummaryPlug Power reported better-than-expected fourth-quarter results. While the quarter benefited from a number of one-time gains, the company has made tangible progress on the margin front as of late.However, cash burn remains elevated, and management's stated growth expectations are not supported by current backlog levels.Absent major build-to-order business, 2026 revenues are not likely to be anywhere close to the $800 million number envisioned by management.With electrolyzer backlog at multi-year lows, management's stated expectation for the business to be a major growth driver this year makes little sense.With the company's guidance looking overly ambitious again, I am reiterating my "Sell" rating on Plug Power's shares.Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More » audioundwerbung/iStock via Getty Images Note: I have covered Plug Power Inc., or “Plug Power” (PLUG), previously, so investors should view this as an update to my earlier articles on the company. Earlier this month, Plug Power reported better-than-expected fourth-quarterThis article was written byHenrik Alex20.94K FollowersFollowI am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.