When profit is absent, investors flee. Planet Labs (PL), a satellite imagery supplier, and Plug Power (PLUG) are two firms that investors should beware of.
In Q3, Planet Labs posted a non-GAAP EPS of -$0.05. Revenue rose by 11.4% Y/Y to $55.38 million. In Q4, it expects another adjusted EBITDA loss of between $9 million and $12 million. For 2024, it will lose between $55 - $58 million. PL stock could fall for a few quarters in response to the outlook.
In the hydrogen market, Plug Power has high risks, as short sellers take a 27.5% short interest on the stock. The firm faces higher interest rate conditions.
Furthermore, renewable electricity prices are rising as Plug Power increases its capital expenses from inflation. The company will rely on subsidies to sustain revenues. Plug may need to move away from its vertical integration strategy.
Drug manufacturer Pfizer (PFE) visited lows almost daily. It is counting on the FTC to approve its Seagen acquisition. However, the twice-daily oral weight loss candidate is falling behind. It did not meet a late-stage development in Phase 2. The safety concerns could delay the drug’s approval.
Pfizer will need to acquire or increase research expenses to offset the setback in the weight loss drug market.
