Hydrogen fuel cell company Plug Power (PLUG -3.05%) reported its second-quarter 2021 financial report after the bell Thursday, and investors gave the stock an early boost today. Its shares popped 10% early Friday, but by the afternoon the stock gave back most of those gains.
Plug reported that compared to the year-ago period, net revenue increased 83% in its second quarter ended June 30. The company said in its press release that robust activity and strong bookings are "setting the stage for substantial growth in 2022." As a result, the company said in its conference call with investors, it raised estimates for the full year 2021 for gross billings to $500 million, a 50% jump over 2020. Previously the company estimated 2021 gross billings -- which do not include incentives given to customers in the form of warrants -- to be $475 million. So why didn't the move in the stock hold today?
Well, Plug continues to lose money, with a net loss of $99.6 million for the quarter, and $160.4 million for the first half of the year. And though net revenue increased 83%, its cost of revenue jumped 142%.
The company does have several projects ongoing, and it expects to reap rewards as they progress. It launched a joint venture in France during the second quarter, hoping to supply hydrogen-fuel-cell-powered light commercial vehicles and build out associated hydrogen fuel infrastructure in Europe. The venture is aiming to achieve 30% market share for hydrogen-powered light commercial vehicles in Europe by 2030. It is also working to build out a green hydrogen production network in the U.S. and recently announced a strategic agreement with BAE Systems for hydrogen-powered buses.
Until the company begins to show results from its projects, investors are likely to remain somewhat hesitant, which explains today's stock action. Plug Power seems to have become a "show-me" stock, and that's probably the right approach based on its past results.