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What: Shares of fuel cell product maker Plug Power (NASDAQ:PLUG) jumped as much as 16.7% this morning after presenting guidance for 2014 at a conference.
So what: Management said it will ship over 3,000 units to 20 manufacturing and distribution sites this year and generate $70 million in revenue. They also see 25% gross margin this year and expect to break even on an EBITDA basis before the end of the year.
Now what: The growth isn't a huge surprise, but it still exceeds the $65 million estimate analysts had put for the company. But keep in mind that even $70 million in revenue means that Plug Power is trading at 9 times revenue, a huge multiple even for a growth stock. It's that multiple and the fact that Plug Power still isn't profitable that will keep me out of the stock until I see even more bottom-line progress.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.