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Shares of Plug Power (NASDAQ:PLUG) continue to get hit hard in today’s session, with PLUG stock losing around 4% as of 3:00 p.m. EST. This move comes as the company announces its plans to release its third-quarter earnings on Nov. 9. Earnings will be reported after the bell, and investors will be paying close attention to the company’s growth prospects and commercialization progress.
The company’s focus on providing a host of hydrogen solutions to power the future of what Plug Power believes will be a green hydrogen economy will be highlighted in this upcoming earnings report. Governments and corporations around the world are making the shift toward green hydrogen, and Plug Power is at the forefront of this movement. The degree to which this investment is flowing through to actual realized revenue growth is what many investors will be focused on.
Let’s dive into what investors may want to keep an eye on when it comes to Plug Power’s upcoming earnings report.
PLUG Stock Sinks Ahead of Key Earnings Report
Plug Power’s upcoming Q3 earnings report will certainly be among the most closely-watched reports for Plug in its history. Investors know how pivotal hydrogen fuel cell technology can be for key industries such as long-haul trucking, and the role Plug Power plays in this space is noteworthy. However, the ability of such companies to provide these comprehensive solutions while doing so at a profit is what investors want to see. Or, at least, a pathway toward profitability.
Plug Power’s gross and net margins remain highly negative as the company expands its footprint and infrastructure. That said, with a year-over-year (YOY) revenue growth rate of more than 70% as of this past quarter, there’s plenty for long-term growth investors to like about the direction Plug Power is headed in this regard. Revenue growth will be a key metric to watch in this earnings report, particularly as the company’s valuation multiple remains in focus for so many investors.
I think investors considering Plug Power need to take a very long-term view of the company’s upside, to the tune of five or 10 years down the road. Thus, this is a high-risk stock (plenty can happen over the next half-decade or decade), and there’s plenty of uncertainty to price in. But if a pathway toward sustainable growth can be found, this is a company that could see some upside following its earnings report next week. Thus, PLUG stock remains on my watch list as a company of interest for now.
On the date of publication, Chris MacDonald did not have (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.