Plug Power (PLUG) shares slipped 7% in early trading on Thursday, reversing gains from the previous session as investors shifted focus to the company's upcoming first-quarter earnings report on May 11. The stock fell to key support at $3 per share, erasing Wednesday's rally driven by strong results from competitor Bloom Energy, which saw its revenue double on AI demand.
Despite a recent uptrend—the stock has risen from a year-to-date low of $1.72 in March to around $3.17—analyst optimism is tempered by persistent cash burn concerns. Plug Power ended the quarter with $368 million in cash and equivalents and $186 million in restricted cash, but the company's history of dilution and negative free cash flow raise doubts. Analysts project revenue will grow 13% this year to $802 million and 18% next year to $947 million, while expected losses narrow to -$0.3 per share from -$0.85 in 2025.
Technically, the stock has moved above the $2.60 resistance and formed a bullish crossover on 50- and 100-day EMAs, with the RSI and PPO rising. The next target is $4.52 (42% above current levels), but a drop below $2.50 would invalidate the bullish outlook. The May 11 earnings will be a key test of Plug's ability to control cash flow and improve margins, especially as peers like Bloom Energy already show positive cash generation.
