Where Will Plug Power Be in 5 Years?
In its more than 20 years of operation, Plug Power (NASDAQ: PLUG) hasn't generated any profits, ever. Yet its stock is up around 385% since the start of the year. What gives? To get a sense of what's going on with this much-hyped company, you need to understand why it isn't profitable, and more importantly, whether it can become profitable in five years.
Plug Power primarily provides hydrogen fuel cell systems that uses hydrogen to produce electricity without combustion. These systems are currently used only in niche areas, such as electric forklifts. Plug Power's prominent customers include Amazon, Home Depot, and Walmart.
The biggest advantage of using hydrogen over fossil fuels is a reduction in carbon emissions. That's why these technologies routinely get governmental support to become commercially viable.
Source Fool.com
