Why Plug Power Stock Plunged 10% This Morning

Why Plug Power Stock Plunged 10% This Morning

Shares of hydrogen fuel cell stock Plug Power (NASDAQ: PLUG) tumbled more than 10% this morning, and remain down 8.3% as of 9:50 a.m. EDT, after the company announced last night that it will sell as many as 35.3 million new shares of stock to raise cash. It's bad news for existing shareholders, however, because the addition of 35.3 million new shares to Plug's already 363.6 million shares outstanding (per data from S&P Global Market Intelligence) will dilute Plug's current owners out of about 8.8% of their ownership stake -- a number not coincidentally close to Plug's percentage decline today. In its entire 23-year history, Plug Power stock has never earned a full-year profit.