It was another challenging day for Plug Power (NASDAQ: PLUG) on Wednesday as the market turned bearish and investors sold off both high-risk assets and energy stocks. Shares declined by as much as 13.5% and were down 13.2% at 3:30 p.m. ET.
Plug Power is experiencing a decline
Plug Power has witnessed an 84% decline in the past year, and there seems to be no end in sight for this drop. Not only are losses accumulating, but cash reserves are also depleting, and there is no expected bailout.
This has become a downward spiral for Plug Power that may not come to a halt. The chart below illustrates the decreasing cash levels as the company’s cash burn intensifies. Previously, management utilized the company’s stock to fill the cash gap by selling shares, but with the declining stock price, this option may no longer be available.
PLUG Free Cash Flow Chart
Although there are billions of dollars in bookings and potential orders, it may take years for them to materialize, and the financial challenge is much more immediate for Plug Power. The company has even issued a warning that it may not be able to continue operating…
2024-01-17 16:31:53
Source from finance.yahoo.com
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