- Outsized impact of warrant charges caused reported Q4 and full-year 2020 revenues to be negative. Discussing warrant background and potential future impact.
- Profitability took a major hit in Q4 due to material quarter-over-quarter increases in operating expenses and cost of revenue despite sequentially lower sales.
- Management expects profitability to move back up this year with gross margins of close to 20% and year-over-year opex increases moderating.
- FY2021 capital expenditures projected at $750 million, almost 60% higher than sales. But with approximately $5 billion in cash on hand, Plug Power won't run into liquidity issues anytime soon.
- The stock continues to represent a highly speculative bet on a triumphant advance of green hydrogen and fuel cell technology in the not too distant future. Only the most risk-tolerant investors should consider using the recent pullback to initiate positions.
For further details see:
Plug Power: Shares Crater On Likely Confusion Over Impact Of Warrant Charges