2023-12-04 03:27:24 ET
Extending a slide that saw shares plummet more than 22% in October, Plug Power (NASDAQ: PLUG) stock sank 31.5% last month, according to data from S&P Global market Intelligence .
In addition to the company's reporting of disappointing third-quarter 2023 financial results, investors clicked the sell button upon learning that management is dubious about the company's ability to remain in good financial standing. A flurry of downwardly revised price targets further gave investors a reason to cast their shares out of their portfolios.
Reporting sales of $198.7 million and a $0.47 loss per share, Plug Power came up short of analysts' expectations that the company would report $238.9 million on the top line and a narrower loss per share of $0.30. Undoubtedly, this contributed to some of the stock's sell-off, as investors are frequently spooked when companies fail to meet analysts' estimates. But smart investors know that singularly focusing on the headline figures is hardly a sound investing strategy. When they dug deeper, therefore, and found that management questions the company's "ability to continue as a going concern," they sounded the alarm. The company's lack of confidence that it will be able to pay its bills -- the going concern -- is hardly reassuring.
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Why Shares of Plug Power Plunged 31.5% in November