Plug Power Inc (NASDAQ:PLUG) had been in the middle of an existential struggle for quite some time, but eventually, the company managed to turn itself around, and that was reflected in the stock price as well. However, the coronavirus pandemic and the associated meltdown in the capital markets have come at the worst possible time for Plug Power.
Last year, the company had even announced a profit, and that was another major milestone. The stock had hit $6 a share in February, but it has now come crashing down to $3.72 a share on the back of the recent selloff in the market.
In a conference call that was conducted around three weeks ago, the company’s Chief Executive Officer Andy Marsh stated that the company did not foresee any revenue impact from the coronavirus crisis. However, things have changed quite dramatically over the past weeks, and it should be noted that Marsh did say that supply chain constraints might surface when sourcing components from China. It is quite clear that the company is going to find it difficult to conduct its business in a smooth fashion due to the current crisis.
That being said, it should also be noted that for long term investors, Plug Power could prove to be an attractive proposition. The company wishes to take its revenues to as much as $1 billion by 2024. Considering the fact that it counts companies like Walmart and Amazon among its customers, it is not a particularly farfetched target either.
The stock has come down to $3.50 a share due to the selloff, and it could well prove to be a nice entry point for investors. Some might argue that the stock might fall further due to a selloff, and that is a fair argument considering the state of the market. However, it is also true that the Plug Power stock could be a long term play.