Why Plug Power Stock Dropped This Week and Could Keep Sinking
Plug Power (NASDAQ: PLUG) shares have soared more than 50% over the last three weeks. Those gains would have been even higher had it not been for a big drop this week. As of early Friday morning, Plug stock is down 10% since last Friday's close, according to data provided by S&P Global Market Intelligence.
Cash and cash equivalents have dropped from about $690 million at the end of 2022 to just about $110 million on Sept. 30, 2023. That's due to delays in building its hydrogen production facilities causing it to purchase a higher-priced product to fulfill its customer agreements.
In its third-quarter report, in November, Plug explained it, saying: "Service costs have been affected as hydrogen disruptions have delayed the roll out of upgrades at both new and existing customer sites. These factors have been compounded by certain cost increases from inflation impacts on labor, materials and overhead."
Source Fool.com
