Hydrogen stocks are supposed to have a bright future.
Goldman Sachs and Bank of America both say it could create an $11 trillion opportunity. President Biden is investing billions in hydrogen hubs in the U.S.
Unfortunately, companies like Plug Power may not be around long enough to enjoy it.
On Friday, shares of PLUG plummeted 40% to $3.53, losing about $1.5 billion in value.
All after the company warned it may not be able to continue operations with its supply chain issues, and its high cash burn rate. Not helping, PLUG posted weak Q3 sales of just $199 million thanks to “unprecedented hydrogen supply challenges” in the North American hydrogen market, as noted by The Street.
And, according to its US SEC filing, PLUG noted that “existing cash and available for sale and equity securities will not be sufficient to fund operations through the next 12 months. These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern.” The US SEC document can be found here.
Hopefully, things will work out for the best, but the situation is a real mess.