After U.S. markets closed Thursday, more than 40 companies reported quarterly earnings. Two stand out for the beating they are taking Friday morning. Neither is an S&P 500 stock, but both indicate what may be in store for their industries in the near term.

Plug Power’s results

Hydrogen fuel cell maker Plug Power Inc. (NASDAQ: PLUG) reported revenue of $198.7 million and a loss per share of $0.47 in the company’s third quarter. Both came in short of estimates. The per-share loss was about 50% worse than the consensus estimate for a loss of $0.31 per share. Revenue missed the consensus estimate by 9.5% although it was 5.4% higher than in the year-ago quarter.

The company’s earnings release was like a press release from a politician about to start an apology tour for some misbehavior:

We believe this hydrogen supply challenge is a transitory issue, especially as we expect our Georgia and Tennessee facilities to produce at full capacity by year-end.

Lessons from ramping up our Georgia green hydrogen facility coupled with our manufacturing ramp, diversity of products, and major new customer wins reinforce Plug’s leadership position in the global green hydrogen economy.

It’s all about hydrogen

Plug Power has been a publicly traded company since 1999. In March of 2000, the company posted its all-time high share price of $1,498 (split adjusted). The company did a 1-for-10 reverse split in 2011. Even so, Thursday’s closing price of $5.93 is quite a drop.

The company is making significant investments in green hydrogen production and took a $41.6 million charge in the third quarter to cover projected future costs for supplying its current fleet of plants. Plug Power blames “severe hydrogen shortages” for their impact on direct costs and planned upgrades compounded by higher costs due to inflation. The company concluded, “If these trends continue, the Company may have to record additional service loss provisions in future periods.”

That’s all investors needed to hear. Friday morning’s sell-off has taken the stock down by some 37%. Plug Power stock fell to a new 52-week low of $3.58 at the opening bell Friday and traded down by around 38% a few minutes later. The stock’s 52-week high is $18.88.

Trade Desk earnings

Digital ad platform The Trade Desk Inc. (NASDAQ: TTD) reported third-quarter revenue and earnings per share above consensus estimates late Thursday. EPS came in nearly 14% higher than forecast and almost 27% higher year over year. Revenue was up nearly 25% year over year. Net income for the quarter rose almost 150% sequentially. Trade Desk also reported a customer retention rate of 95%, continuing a 9-year streak at that level.

Company spending on R&D was higher than spending on sales and marketing, a sign of Trade Desk’s commitment to its AI-powered ad placement products. The company also repurchased $90 million worth of stock in the quarter and has $273 million remaining in its current package.

Weak forecasts sink stocks

In its fourth-quarter outlook, Trade Desk said it expects to report revenue of at least $580 million and adjusted EBITDA of about $270 million. Analysts’ consensus revenue estimate for the quarter is $582.2 million. The consensus estimate for adjusted EBITDA is $272.1 million.

Trade Desk did not fall short by much, but it was enough. Trade Desk’s sinking share price could be a contributing factor to both Alphabet’s and Amazon’s declining share price Friday morning. After all, advertising is Alphabet’s lifeblood and one of Amazon’s fastest-growing sources of revenue.

Trade Desk stock traded down about 25% in Friday’s premarket session and was down about 18% at around $62.90  shortly after the opening bell. The stock’s 52-week range is $41.20 to $91.85.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.