Once again, the hydrogen industry has come under pressure. On Thursday, Plug Power suffered a massive loss of -13%. In recent days, the stock has already taken a significant hit. However, on Friday, the stock suddenly gained more than 10% – is there new hope on the horizon? In my opinion, despite the gain on Friday, Plug Power is emblematic of the end of the entire industry. I can no longer recommend the so-called pure players like Plug and ITM Power or even the recently discussed Nel Asa. Individual breakouts like on Friday are simply trading surprises.

Plug Power: Out in the valuation The prices of Plug Power have now fallen below a market capitalization of less than 2 billion dollars. The US company is facing massive problems, especially of an economic nature.

The revenue for the past year is estimated by the market at around 1.05 billion dollars. Plug Power itself promised a revenue of 1.2 billion dollars a few weeks ago. Even this downwardly revised revenue will not be met. Current losses are estimated at -900 million dollars. Personally, I believe that the loss for the past year will be even higher, but I cannot provide evidence for this.

Only in a few weeks will Plug Power present its annual results. Just a year ago, Plug Power retroactively provided a profit warning at the end of January for the year 2022. I expect the same for 2023 this year. In the coming days, we will see exactly this, in my opinion.

The hydrogen industry is not making progress In the best case, the industry operating with green hydrogen will only generate revenues significantly later. The question of whether sufficient green hydrogen can be produced economically or transported cheaply enough has not yet been answered. The demand for the necessary electrolyzers will be too weak for Plug Power and Nel Asa.

Because even Nel Asa has not generated any new orders for weeks. In the United States, according to Plug Power CEO Andy Marsh, the subsidies are not high enough, he also pointed out a few weeks ago.

Finally, Plug Power announced in the fall of 2022 that the company would need more capital. This will only work through a capital increase, as the group is still producing operating losses and cannot service liabilities. In summary, Plug Power – like Nel Asa and ITM Power – still has the problem that it cannot generate sufficient orders, that operating losses will occur in both 2023 and 2024, and that capital is lacking. Even from a trading perspective, I believe you should not invest in this sector. There are better energy companies.

Plug Power: The crash – WKN: A1JA81 – ISIN: US72919P2020

Source: https://fundamental.aktienscreener.com/US72919P2020/EI/plug-power-inc/data