Plug Power (PLUG +2.13%) is a pioneer in the hydrogen industry. It created the first commercially viable market for hydrogen fuel cell technology. The company has since deployed over 69,000 fuel cell systems and more than 250 fueling stations, more than any other company in the world. It's also the largest buyer of liquid hydrogen.
Here's a look at how a $100 investment in Plug Power has done over the past decade.
Image source: Getty Images.
Plug Power's lost decade
Plug Power has taken investors on a wild ride over the past decade. It has invested heavily in building its industry-leading hydrogen ecosystem. While those investments have significantly expanded the size of the company's operations, they haven't created any value for investors.
If you had invested $100 in the hydrogen stock a decade ago, you would have a little less than $100 today ($98.63 at the recent share price). While the stock has been basically flat over the past decade, it wasn't a boring ride. At one point, this $100 investment would have been worth over $3,000.
NASDAQ: PLUG
Key Data Points
Two issues have plagued Plug Power over the past decade. Its hydrogen business is losing lots of money, which has forced the company to routinely raise additional capital to fund its operations and expansion. One way the company has done that is by selling additional shares. As a result, its outstanding shares have surged a staggering 672% over the past decade. That has diluted existing investors, weighing heavily on the stock price.
On a more positive note, Plug Power has taken several steps in the past year to reduce costs and raise non-dilutive capital to fund its businesses. The company now believes it can fully fund its current business plan, which would see it become increasingly profitable over the next few years. That potentially positions the company to deliver a much better stock price performance over the next decade.
