![]() Thus, Plug Power really does appear to be in the very early stages of exponential growth, as the company deploys more and more fuel cell systems across the materials-handling industry. They may be, but HFC tech is just now coming into its own - and in the forklift world alone, Plug Power has a$30 billion opportunity. If that is the case, adjusted EBITDA will be barely positive.įrom that perspective, it’s easy to look at management’s growth targets and call them overly ambitious. Those are aggressive targets, as revenues this year are expected to be just $220 million. Plug Power management has laid out intentions to grow revenues to $1 billion and adjusted EBITDA to $200 million within the next five years. The numbers here work out so that if HFCs do gain some mainstream traction over the next several years, Plug Power stock could run towards $8 within the next several years. If that transformation materializes, PLUG stock should head way higher in the long run. Thus, over the next several years, the HFC market has a huge opportunity to go from essentially zero, tosomething much bigger. Right now, the HFC market is essentially a non-existent one. But it will convince enough consumers to make this a sustainable market with sizable demand. Will those two advantages convince everyone to pivot from electric cars to hydrogen cars? No. HFC tech is one such alternative fuel sources whichaddresses those disadvantages. Instead, it is far more likely that there will be alternatives for consumers who want to switch away from diesel, but don’t like some of the inherent disadvantages of electric batteries Namely, short ranges and long re-charge times. However, at scale, it is unlikely that electric batteries remain the only alternative fuel source. That’s why we have seen electric battery car makers like Tesla(NASDAQ: TSLA ) make a huge dent in the traditional auto market, and turn into multi-billion dollar auto giants. This transformation has huge momentum right now, and will sustain that movement for the foreseeable future as governments and consumers globally work together to reduce carbon emissions.Īt present, electric batteries are the only well-known and widely available alternative fuel source. Zooming out, the whole auto world is pivoting from traditional fuel sources to alternative fuel sources. The best way to look at Plug Power stock is as a pure play on commercial and consumer adoption of HFC tech in the auto market. That makes recent weakness in PLUG stock look like a compelling buying opportunity for those who believe in HFC tech. ![]() As such, the thesis here remains unchanged. However, a public share offering in late 2019 is not one of them. There are major risks to this big-picture bull thesis. All that growth could reasonably push PLUG stock towards an $8 price tag within the next several years.ħ Vaping Stocks to Get into Ahead of the Crowd ![]() If HFC tech does continue to gain traction, Plug Power will grow exponentially over the next few years. At this point in time, that seems like a good bet. Plug Power stock is a high-risk, high-reward bet on continued commercial and consumer adoption of HFC technology. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In the big picture, this recent plunge in PLUG stock offers an interesting buying opportunity for risk-seeking investors. Naturally, since the offering has been announced, Plug Power stock has retraced its way back closer to the $2.75 offering price. When the offering was announced, PLUG stock was trading hands near $4. The culprit? A public offering of40 million common sharesat a price of $2.75 per share. However, after rallying from $1 in late December 2018 to $4 by late November 2019, PLUG stock has since fallen off a cliff - dropping below $3 in a matter of weeks. ![]() Shares of hydrogen fuel cell (HFC) maker Plug Power( NASDAQ: PLUG ) have been hot all year long, as HFC technology has gained traction in some commercial auto markets. ![]()
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