Confident Plug Power CEO disregards investor worries.

Plug Power CEO, Andy Marsh, expressed confidence in the company's future despite investor concerns. Marsh stated that they are in a good position to manage through their current challenges and are exploring opportunities to raise cash. The company's stock plunged after weaker-than-expected results and a warning about potential funding issues. Marsh highlighted that Plug Power has zero debt and a $5 billion unleveraged balance sheet.
Nov. 23, 2023 08:03
Confident Plug Power CEO disregards investor worries.

Plug Power CEO Andy Marsh addressed concerns about the company's future after its stock experienced a significant drop due to a "going concern" warning. Marsh expressed confidence in the company's ability to manage through the situation and stated that they are exploring opportunities to raise cash. He emphasized the importance of acting prudently to protect the interests of investors in the long run.

The sell-off of Plug Power shares occurred following weaker-than-expected results and the "going concern" warning, which raised doubts about the company's ability to fund its operations in the next year. The company acknowledged that its existing cash and available securities might not be sufficient to support its operations.

Despite the recent challenges, Marsh presented a more positive outlook for Plug Power. He highlighted that the company has zero debt and a strong balance sheet. Marsh mentioned that Plug Power is considering various options, including debt financing, to raise $500 million. Additionally, the company is considering slowing down plant openings. Marsh acknowledged the current difficulties but emphasized the strong demand from major customers.

Plug Power shares have experienced a significant decline this year, along with other clean energy stocks. Concerns about higher rates in the capital-intensive sector and falling valuations have contributed to this decline. Marsh noted that faster market growth would make the situation easier.

In the third quarter, Plug Power reported a loss per share that was steeper than Wall Street expectations. The company attributed the loss to supply challenges for hydrogen, which resulted in volume constraints and deployment delays. Plug Power aims to address these challenges with the opening of two new green hydrogen production plants. Marsh stated that the Georgia plant alone, scheduled to open by the end of this year, would help alleviate the pressure.

Following the release of Plug Power's results, several financial institutions downgraded the stock and lowered their price targets. JPMorgan, Oppenheimer, and RBC Capital all expressed concerns about the current operating and capital markets environments, but still believed that Plug Power could overcome its cash flow issues.

Akiko Fujita is an anchor and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita.

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