Why Plug Power Inc's Shares Plunged 17% in November

Markets Motley Fool

What happened 

Continue Reading Below

Shares of hydrogen fuel company Plug Power Inc (NASDAQ: PLUG) plunged 16.8% in November, according to data provided by S&P Global Market Intelligence, after reporting another big quarterly loss. 

So what 

Third quarter net revenue doubled to $35.4 million, but net loss more than tripled to $41.0 million, or $0.18 per share as the cost of stock warrants weighed on the company's financials. 

What's worrying investors is that deals with Walmart and Amazon may weigh on results for the foreseeable future. Management said they need to maintain a high level of performance in the fourth quarter, which they said will be a high risk. 

Now what 

Continue Reading Below

Plug Power doesn't have much room for error fulfilling its growing order book because its operating margins have been negative for a long time and management hasn't proven they can turn the trend around. If losses continue it'll force management to sell shares to fund operations, continuing a long-term trend of diluting shareholders. Until Plug Power turns operations around and starts making money I'll remain skeptical on this stock and investors should be cautious as well. 

10 stocks we like better than Plug Power
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Plug Power wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of December 4, 2017

Travis Hoium has no position in any of the stocks mentioned and has a family member who works at Amazon. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.