tradingkey.logo

1 Reason I'm Still Holding On to Hope for Plug Power Stock

The Motley FoolAug 23, 2025 8:14 PM

Key Points

  • Plug Power is a leader in fuel cells and hydrogen production.

  • The company has made some progress in achieving profitability in the first half of 2025.

  • Despite the company's success, Plug stock should only remain a consideration for investors with high threhholds for risk.

Over the past 25 years, Plug Power (NASDAQ: PLUG) has demonstrated that there's a strong appetite for both fuel cell solutions and hydrogen. From its longtime partnership with Walmart to the recent development of a hydrogen production plant in Louisiana, Plug has notched a variety of victories.

One area where it persistently comes up short is with the bottom of the income statement. Despite all of its success, Plug has failed to demonstrate that it can be profitable in its endeavors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

But I'm not giving up all hope yet as I think the company still has potential to flourish.

A woman sits on beach and looks at ocean during sunrise.

Image source: Getty Images.

Project Quantum Leap is producing results

Earlier this year, management announced an expense-reducing initiative dubbed Project Quantum Leap. In addition to reducing its workforce, the cost reduction strategy entails reductions in both discretionary spending and capital expenditures. Management projects that Project Quantum Leap will lower costs by about $150 million to $200 million annually.

With half of 2025 in the rear-view mirror, it seems that Project Quantum Leap is producing results. For the first six months of 2025, Plug reported a gross profit margin of negative 41.4%, a notably narrower loss than the gross profit margin of negative 110.1% that it posted during the same period in 2024.

Lauding the initiative and suggesting that further improvements are in store for the rest of 2025, Andy Marsh, Plug's CEO, stated on the Q2 2025 conference call: "Project Quantum Leap remains central to these gains as we streamline our operations, consolidate facilities and drive efficiencies across the business. We remain on track for gross margin neutrality by Q4 with tangible steps in place to get there."

Does Plug's improving performance make the stock a buy?

Although Plug has a history of making bold financial projections and failing to achieve them, its success so far in 2025 has me intrigued about the remainder of the year. The stock should still be reserved for those with high risk tolerances, but if the company achieves breakeven on a gross profit basis, Plug stock would become a lot more interesting.

Should you invest $1,000 in Plug Power right now?

Before you buy stock in Plug Power, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Plug Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,657!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,993!*

Now, it’s worth noting Stock Advisor’s total average return is 1,057% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 18, 2025

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Related Articles

KeyAI