Plug Power (NASDAQ:PLUG)
It seems like the week will finish poorly for Plug Power stock. Hydrogen fuel cell specialist Plug Power stock dropped early Friday as management announced an update and cautioned investors that top-line growth in 2022 may not be as strong as initially predicted.
Plug Power stock was down 6.7% as of 11:57 AM ET.
What’s the Reason?
Management at Plug Power (NASDAQ:PLUG) had previously projected a range of $900 million to $925 million in revenues for 2022. However, the company’s ability to reach that goal has been hampered by interruptions in the supply chain. The company’s leadership has revised its sales forecast downward by 5-10%.
Despite the unsettling nature of the report, management moved to reassure Plug Power stock shareholders by emphasizing the continued interest in the company’s fuel cell and hydrogen products. Although revenue may be lower than expected in 2022, the fuel cell applications and electrolyzer business continue to see strong demand, the firm said in an update.
During 2021, Plug Power earned $502 million in income.
What’s Next?
Despite Plug Power’s inability to demonstrate profitability in its fuel cell business, investors have kept faith in the firm due to its rapid sales growth over the previous decade.
However, after Friday’s announcement, growth investors seem to have lost faith in the company’s future prospects. Spectators thinking about jumping in on this sell-off because they perceive it as a purchasing opportunity should hold off until the Plug Power stock delivers further information during its Plug Symposium on October 19.
Meta Description
As a result of problems in the company’s supply chain, Plug Power anticipates that its sales will fall short of its projections for 2022.
Featured Image – Megapixl © Timonschneider
Author Shariq Khan 
