Why Plug Power Plummeted 48% in the First Half of 2024

After Plug Power (PLUG -8.23%) stock plummeted 64% in 2023, investors rang in the new year with renewed hope that the fuel cell and hydrogen stock would be able to rebound from the previous year's performance. Through the first half of 2024, however, those hopes have hardly been realized. Plug Power stock's nosedive continued, as it fell 48% in the first six months of 2024, according to data provided by S&P Global Market Intelligence. What powered the bear's pessimism? Beginning the year on an inauspicious note, Plug Power stock tumbled in early January when Susquehanna cut its price target on shares to $4.50 from $9. Investors were shaken by the revised price target, and shares dropped 8% on the day the analyst's estimate was reported. Days later, the stock slid even further as investors digested news that Plug Power planned on raising up to $1 billion through an issuance of new equity -- potentially subjecting investors to shareholder dilution. The end of January provided a reprieve from the stock's decline, though. After Plug Power reported that it would receive a $1.6 billion loan from the Department of Energy and that it had made its first liquid hydrogen shipments from its Georgia production facility, investors rejoiced, and the stock erased the loss it had suffered over the past month. But the reprieve didn't last. Frustration with the company's lack of progress toward profitability set in after Plug Power reported disappointing fourth-quarter 2023 financial results in early March. While Plug Power reported revenue of $891 million for 2023 -- a 27% year-over-year increase -- it also reported a greater loss: Diluted earnings per share for 2023 were -$2.30, a notably steeper loss than the diluted EPS of $1.25 it posted in 2022. The first quarter of 2024 financial results didn't provide much to inspire investors either. Falling short of analysts' revenue Q1 2024 estimates of $158 million and EPS of -$0.33, Plug Power reported sales and EPS of $120 million and -$0.46, respectively. Should you charge up your portfolio with Plug Power stock now? With shares currently down about 33% year to date, investors with their eyes on fuel cell and hydrogen stocks may be wondering if now's a good time to scoop up shares of Plug Power following their sell-off. At this point, it's important to be mindful of the extraordinary risk that an investment in Plug Power entails. In business for more than 25 years, Plug Power has failed to prove that its fuel cell and hydrogen production endeavors can be profitable. Therefore, an investment in Plug Power should only remain a consideration for those comfortable with a speculative investment.