It has truly been a turbulent start to the year for Plug Power (NASDAQ:PLUG). Indeed, the hydrogen fuel cell company has spent the past week on a downward spiral. However, PLUG stock still remains solidly in the green for the past one month.
Part of this volatility is due to the fact that Saudi Arabia’s Public Investment Fund (PIF) recently cashed out of its entire PLUG stock stake — a position of 5.67 million shares. Now, Plug Power is set to report fourth-quarter 2023 earnings on March 1. This report could either change PLUG stock’s unstable trajectory for the better or make things much worse.
How concerned should investors be as Plug prepares for its next major catalyst? Let’s take a closer look.
What’s Happening With PLUG Stock?
For all its success over the past one month — with shares up more than 20% — PLUG stock has still struggled considerably so far this year. Furthermore, over the past six months, shares have lost more than 60%, plunging PLUG below the $5 level to around $3.45 per share today.
This has understandably caused Wall Street to turn increasingly bearish on the company. During the past month, analysts from Redburn Atlantic, Seaport Global and UBS have all issued hold ratings on the stock. Meanwhile, Morgan Stanley has labeled it with a “sell” rating.
With negative sentiment rising, investors are watching PLUG stock closely as March 1 draws near. However, CEO Andy Marsh recently stated that he thinks Plug will finish the year strong, surprising short sellers.
Beating Wall Street estimates for Q4 earnings and revenue would be an excellent way to kickstart a turnaround. InvestorPlace contributor Viktor Zarev also recently highlighted the company’s unique position as an alternative fuel provider for workplace utility vehicles:
“[This] niche specialization puts PLUG stock in a position to capitalize on further technological developments in hydrogen-powered vehicles. Furthermore, [Plug Power] partners with major warehousing companies like [Amazon] and [Home Depot] to develop its fuel cell offerings. For Plug Power, more partners and customers decrease the production costs of its fuel cells and increase profitability.”
These competitive edges could certainly give PLUG stock the boost it needs in 2024 to get back to its place above the $5 level. For investors, the upcoming Q4 earnings report will do much to determine how quickly the company can turn around. Until that happens, though, shares will likely continue to be volatile.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
