It has been a perilous journey downhill for Plug Power (NASDAQ:PLUG) over the past few years, which has plummeted from great heights earlier this decade down to the ranks of the penny stocks.
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It is never easy to build a company, much less a new industry, and the developer of hydrogen fuel cell systems has yet to fully crack the code of profitability.
Still, the world’s energy needs are only growing, and PLUG offers a potentially clean solution to the increasing demand. While that larger vision is all well and good, PLUG still needs to demonstrate it has a viable business model.
There have been some good indications of late, as the company has extended its contract with the logistics firm Uline through 2030, its $174 million in revenue in Q2 2025 represented 21% year-over-year growth, and PLUG’s gross margin of -31% in Q2 – while still in the negative – was much improved from the -92% figure just one year prior.
The company’s share price has increased by 10% over the past three months, a reflection on these positive developments.
While these are promising signs, top investor Reuben Gregg Brewer isn’t completely sold.
“Until Plug Power is a sustainably profitable business, most investors will be better off avoiding the stock,” states the 5-star investor, who’s ranked among the top 1% of stock pros on TipRanks.
Gregg Brewer readily acknowledges the company’s improving finances, in particularly the vastly better gross margin. Still, the investor points out that this still signifies a business that has yet to turn a profit, while pointing out that gross margin does not take into account necessary expenses such as R&D and general and administrative costs.
“Neither of these is optional and, in the case of Plug Power, R&D is vital to establishing a material hydrogen end market,” adds Gregg Brewer.
Though admitting that the company’s bargain share price could entice some, he also cautions all but the most risk tolerant of investors to search for greener pastures elsewhere.
“It isn’t a business that will be worth the risk for any but the most aggressive of investors,” concludes Gregg Brewer. (To watch Reuben Gregg Brewer’s track record, click here)
Wall Street is also approaching PLUG with an abundance of caution. With 9 Holds – to go along with 4 Buys and 2 Sells – PLUG carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $1.89 suggests gains approaching 30% in the year ahead. (See PLUG stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.