The highest price target for Plug Power (PLUG +1.54%) stock on Wall Street is $7 per share. The hydrogen stock is currently trading below $2 per share as of the time of this writing, and that's after the stock's 140%-plus run-up in the past six months.
You'd think Plug Power makes for a compelling investment case. Instead, I'll give you three compelling reasons why you should forget this stock.
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Plug Power is a loss-making company
Plug Power was founded in 1997 and shipped its first fuel-cell system for stationary power in 1999. That's also the year when it became a publicly listed company. In 2023, Plug Power outlined ambitious goals, projecting revenue to reach $1.2 billion in the year, $6 billion by 2027, and a whopping $20 billion by 2030.
Here's where things stand now: Plug Power generated only $629 million in revenue in 2024, down 29% from 2023. Worse yet, Plug Power has never turned a profit.
It's hard to be an investor in a company that hasn't been able to make money in over two decades of its existence. Although Plug Power expects to become profitable "overall" by the end of 2028, it's a big "if." In the nine months ended Sept. 30, 2025, Plug Power reported a net loss of $785 million.
NASDAQ: PLUG
Key Data Points
Plug Power needs a lot of money
Plug Power's growth hangs largely on its ability to generate cash. With the company burning cash instead, it has relied heavily on debt and stock issues to raise funds. This single chart illustrates the point.
Plug Power recently raised additional funds to repay its existing high-cost debt and refinance a portion of its other loans, aiming to reduce its interest expenses. However, the company still has a long way to go before it can generate positive cash flows and bolster its balance sheet. Worse yet, Plug Power's latest announcement raises concerns about its growth plans.
Plug Power pauses a major growth program
Plug Power was banking on a $1.66 billion loan guarantee that it received from the Department of Energy in early 2025. That was, however, under the Biden administration. President Donald Trump paused funding for Biden's clean energy initiatives, putting growth plans for companies like Plug Power in limbo.
The DOE loan was a lifeline for Plug Power as it would have financed the development of several green hydrogen plants, helping Plug Power produce green hydrogen internally and reduce reliance on third-party purchases.
In November, Plug Power announced that it is suspending activities related to the DOE loan program and warned investors that this move could lead to the DOE terminating the loan commitment if deemed necessary, potentially limiting the company's future access to federal funding.
That also means a pause on Plug Power's ambitious hydrogen production plans. I believe this is a significant setback, one that should prompt investors to reassess their investment in Plug Power stock.
