After Beating Expectations in Q4, Is It Safe to Buy Plug Power Stock?
Key Points
Plug Power generated a top-and-bottom-line beat in its most recent quarterly results.
It reached a milestone in 2025, with its top line eclipsing $700 million for the first time.
Questions about long-term profitability, however, are likely to weigh on the stock.
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The world's energy needs are only going up, thanks in large part to the growing demand for all things related to artificial intelligence (AI), including chatbots, models, and next-gen products and services. Growth-oriented investors have been targeting energy stocks in anticipation of the demand.
One polarizing stock to own in recent years has been Plug Power (NASDAQ: PLUG). The hydrogen fuel cell company can help offer solutions to rising energy needs. However, with poor financial results in the past, investors have been worried about its long-term viability. It has cratered a whopping 95% in just five years.
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But with the company recently reporting some impressive quarterly results, has Plug Power shown that it's on the right track, and that it's safe to buy the energy stock?
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Plug Power delivers solid numbers in Q4
On March 2, Plug Power reported its quarterly results for the last three months of 2025. The company's sales came in at $225.2 million, which was better than analyst expectations of $217 million. And on the bottom line, its adjusted per-share loss was $0.06 was not as bad as the $0.10 loss that Wall Street was anticipating.
It was a strong performance for the company, which gave shares of Plug Power a boost, as they went from $1.81 before earnings to as high as $2.50 a couple of days later. While the energy stock has given back some gains since then, it is on a much more positive trajectory nonetheless.
Why the stock is still a highly risky option for investors
An earnings beat, especially on both the top and bottom lines, is a great result for Plug Power, and it has certainly helped move the stock. But when it comes to long-term investing, it's the big picture that matters most, not how a company does from one quarter to the next.
And this is why Plug Power is still a risky investment. The company experienced some decent growth in 2025 with its full-year revenue rising by 13% and reaching a new record of $710 million, but the lack of profitability remains a big concern. Plus, the company is still burning through cash, calling into question the sustainability and safety of the stock over the long term.
Plug Power may have some promising growth opportunities as the world's energy needs continue to grow, but without a clear path to profitability, investors should tread carefully with the stock. Although its valuation is a fraction of what it was five years ago, that doesn't make it a safer buy. Unless you have a high risk tolerance, you're likely better off avoiding Plug Power and seeking out safer growth investments instead.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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