Why Plug Power Stock Plunged Another 35% in April

Neha Chamaria, The Motley Fool

Tue, May 6, 2025, 12:06 PM 3 min read

• Plug Power's projected muted revenue growth for Q1 and Q2.

• The hydrogen stock, however, is trying hard to reduce its cash burn.

The stock of Plug Power (NASDAQ: PLUG) has been an absolute disaster in 2025 so far: It has fallen for four straight months now. April was a wild ride, with the hydrogen-power stock plunging 35.4%, according to data provided by S&P Global Market Intelligence. At one point in trading on April 28, though, Plug Power rose over 45%, only to fall back soon after.

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Earlier in April, the company added a new client, STEF, a European logistics company. Plug Power will deploy its GenKey solutions, which include everything from hydrogen fuel cells to service, at two STEF cold-storage sites in collaboration with Toyota Material Handling Europe.

Plug Power also started a hydrogen plant in Louisiana last month. It is a 15-ton-per-day hydrogen liquefaction plant operated through Hidrogenii, Plug Power's joint venture with chemical company Olin.

The plant will liquify hydrogen produced by Olin and serve the needs of Plug Power's material handling customers. Plug Power believes this plant will reduce its reliance on third-party hydrogen suppliers.

These business updates, however, failed to lift investor sentiment for the beleaguered stock. On April 28, though, the market's knee-jerk reaction to Plug Power's preliminary numbers for the first quarter sent the stock surging over 45% in trading during the day.

Although projected revenue for the first and second quarters topped analysts' estimates, two bigger factors sent the stock soaring, even if momentarily.

Plug Power expects to report revenue between $130 million and $134 million for the first quarter, around 10% year-over-year growth at the midpoint. For the second quarter, it expects revenue of $140 million to $180 million, or roughly 12% growth year over year at the midpoint. Those are pretty muted numbers, but the bigger highlight is Plug Power's lower cash burn and fewer potential share issues.

Management said its net cash usage in the first quarter was about $142 million compared with $268 million in the fourth quarter. It expects its cash burn to reduce further as it cuts costs, ramps up hydrogen plants, and raises prices. The company ended March 31 with a cash balance of $296 billion, up from around $205 million as of Dec. 31, 2024.