Why Plug Power Stock Jumped 11% in December
Plug Power (NASDAQ: PLUG) stock had been dropping consistently for months in 2023 until it gave investors some respite just before the new year. The hydrogen stock rebounded and gained 11.4% in December, according to data provided by S&P Global Market Intelligence. Investors are now wondering whether the stock has bottomed out and could rally this year.
Plug Power's third-quarter numbers, released in November, raised several red flags. The company, which expects its top line to grow exponentially in the coming years, reported a meager 5% growth in revenue for Q3. It reported a negative gross margin of 69% versus a negative 24% in the year-ago quarter and blamed several factors for the fall including "equipment sales mix, service contract loss accruals, and continued negative fuel margins."
Worse yet, management confirmed Plug Power's existing cash balance is not sufficient to fund its operations and growth projects, and that it was pursuing several options to raise capital, including debt and project partners.
Source Fool.com
