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Plug Power (PLUG) stock fell as much as 17% in an extended period of time after the company filed for a $1 billion stock offering. The company has fallen more than 88% over the past two years.
Yahoo Finance anchors Josh Lipton and Madison Mills break down the company’s latest developments and what they mean going forward.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
video transcript
[AUDIO LOGO]
Josh Lipton: Check out Plug Power stock price here. It’s plummeting in after-hours trading. The company has filed for a $1 billion initial public offering. The headline here is Madison Files for Possible Offering of Stock B via Riley B and the stock is taking a hit here, down about 16% in after-hours.
Of course, this stock has been in turmoil for a while. In fact, it’s down about 80% over the past 12 months. It has fallen about 40% since the beginning of this year alone. You might think that would brand a lot of bad news, but actually, if you look at the analysts covering this name, it’s clear that’s not the case.
Madison Mills: Yes, that’s interesting. This is also one of the companies affected by rising interest rates, flat utility bills, meter changes and net prices. And we think that impact isn’t just for names like Plug Power, but also Enphase Energy and SunPower, whose shares, while not yet active, have fallen 79% in the past 12 months. .
Now let’s remember what Plug Power does. Their focus is on developing hydrogen fuel cell systems to replace traditional batteries. So this is climate-friendly theater, but the demand isn’t there. Interestingly, however, the company’s largest customer is Amazon, which previously generated about 15% of the company’s sales. So I’m curious to know what strategic changes have occurred at Amazon and how they have affected Plug Power’s performance.
Josh Lipton: Yeah. We saw some bulls move to the sideline. By the way, they recently talked about near-term uncertainty around funding and gross margins. There must have been some people who saw the news and lowered their ratings.
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