Skip to main content

Market Overview

Why Plug Power Shares Dropped Lower Today

Why Plug Power Shares Dropped Lower Today

The shares of Plug Power Inc. (NASDAQ: PLUG) dropped 11.79% lower in the after-hours session Tuesday at $37.65, following an 8% drop in the regular trading session.

What Happened: The plunge followed the hydrogen fuel-cell company reporting errors in accounting, particularly related to several non-cash items.

See also: How to Buy Plug Power (PLUG) Stock

Plug Power said there were issues with the classification of certain costs that resulted in downsized research and development expenses and a corresponding increase in the cost of revenue. 

Accounting errors are also observed in the “reported book value of right of use assets and related finance obligations,” “loss accruals for certain service contracts” and “the impairment of certain long-lived assets,” Plug Power noted.

See Also: JPMorgan Turns Bullish On Plug Power, Predicts 'Meaningful Share Of Future Hydrogen Economy'

What’s Next: The Latham, New York-based company said, as a result, it would restate previously issued financial statements for fiscal years 2018 and 2019 and quarterly filings for 2019 and 2020.

Plug Power said the accounting errors didn’t relate to any override of controls or misconduct. The company’s CEO Andy Marsh said “there is no expected impact to our cash position, business operations or economics of commercial arrangements.”

The hydrogen fuel-cell company still expects to meet its gross billings targets of reaching $475 million by 2021 and $1.7 billion in 2024.

Read Next: Top 10 Electric Vehicle Stocks You Should Know About


Related Articles (PLUG)

View Comments and Join the Discussion!

Posted-In: Andy Marsh hydrogen fuel cellNews Events Tech Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at