Here's the 1 Thing I'd Wait to See Before Buying Plug Power Stock
Plug stock has failed to make it to one buy list, but that could change if the company achieves a certain feat.
The headline reads: "Here's the 1 Thing I'd Wait to See Before Buying Plug Power Stock." This article discusses the author's cautious approach to investing in Plug Power (PLUG) stock, despite the company's impressive growth over the past two decades. The author has typically taken a bearish stance on the fuel cell stock, but has recently transitioned to a more positive outlook due to improving financials and changes in management.
However, the author remains skeptical about purchasing Plug stock at this time, as the company has yet to generate organic cash flow. Despite achieving a 21.3% compound annual growth rate (CAGR) in sales from 2015 to 2025, Plug has consistently reported negative cash flow from operations over the same period. This discrepancy is even more concerning when compared to Bloom Energy (BE), a fuel cell peer of Plug Power, which reported $300 million in operating cash flow in the first half of 2026, while Plug reported a negative $244 million.
To address this issue, Plug has turned to raising capital through equity issuance, resulting in significant shareholder dilution. From March 2016 to February 2026, Plug's outstanding share count grew from over 180 million to approximately 1.4 billion. While the company is likely to maintain sales growth in the coming quarters, it remains a "sinkhole for shareholder value" until Plug can successfully generate organic cash flow.
The author concludes that waiting for this crucial metric before investing in Plug Power stock is the prudent course of action.
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