Plug Power's Liquidity Boost and Growth Prospects
Shoring up its liquidity
Plug Power recently reported its fourth-quarter and full-year results for 2023. The company noted that it has now resolved the going concern issues it raised at the end of the third quarter. It has sufficient cash on hand and available liquidity to fund its operations for the foreseeable future.
The case for buying Plug Power
With the hole in its liquidity plugged, the company can focus on capitalizing on the massive opportunity ahead for hydrogen. According to Deloitte, the global hydrogen market will eclipse the value of the worldwide liquefied natural gas (LNG) market by the end of this decade. It could reach a jaw-dropping $1.4 trillion by 2050.
Plug Power is investing heavily to capitalize on this massive growth opportunity. It recently commissioned its Georgia hydrogen plant, the largest of its kind in the country. It's developing several others across the country and in Europe. The company believes these investments will grow its revenue from $891 million last year to as much as $20 billion by 2030.The case against Plug Power
While Plug Power holds lots of promise, it also has lots of issues. A big problem is that it's losing money hand over fist. Plug Power posted a staggering $1.4 billion loss last year -- nearly double 2022's total -- on only $891 million in revenue (27% more than 2022).
The company needs to demonstrate it can deliver before investors decide whether to invest their money.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.