What happened
Extending the slide that they suffered to start the week, shares of Plug Power (PLUG 1.26%) are continuing to plunge lower today despite the fuel cell and hydrogen specialist reporting seemingly positive news.
As of 11:32 a.m., shares of Plug Power have fallen 6.3%.
So what
Acknowledging a new company record, Plug Power reported today that it manufactured 122 megawatts (MW) of its 1 MW electrolyzer stack platform in the first quarter of 2023 at its production facility in Rochester, New York. Besides a peek at Plug's recent performance, management provided insight into the remainder of 2023. With the strong Q1 2023 performance under its belt, management affirmed that it expects to ramp up production to 100 MW per month in the middle of Q2 2023 and to further increase production in the third quarter.
What's missing from the company's announcement, however, is any sort of commentary regarding profitability. Plug Power has offered investors lofty predictions about how it will make progress over the next three years in pursuit of generating something positive on the bottom line. And while the company touted its success in setting a new highwater mark for producing electrolyzers, there was no insight provided today into whether the company is on track to achieve its gross margin forecast of 10% for 2023.
Now what
It may seem counterintuitive: Plug Power announces a company record, and shares plummet. For those familiar with the hydrogen stock, though, the dynamic isn't so surprising. Plug Power frequently announces seemingly auspicious news events, but the song remains the same: The company stays unprofitable. Until the company can show that its hydrogen exploits can be profitable, investors should expect more of the same.
