After a successful year 2023 on Wall Street, experts are also positive about the new year 2024. A great potential is seen particularly for the growth stock Plug Power. While the Dow Jones Industrial gained 13.7 percent and even reached a new record high at times, the NASDAQ Composite increased by a total of 43.42 percent in the last 12 months.

Even for growth stocks, the past year was extremely successful. With the flourishing US economy and the prospect of an interest rate cut by the US Federal Reserve, experts believe that the upward trend will continue in the field of growth stocks, as reported by The Motley Fool. Some Wall Street experts are particularly optimistic about the growth stock Plug Power.

The company for hydrogen fuel cell solutions benefits from the increasing development towards more environmentally conscious, greener, and innovative mobility solutions. As The Motley Fool emphasizes, the optimism of Plug Power experts is in line with the further transition of developed countries to renewable energy sources. Therefore, the consensus price target on Wall Street has been set at $9.13, which would represent an upside potential of 112.82 percent compared to the current level ($4.29 on January 4, 2024 via NASDAQ).

However, the current situation does not look particularly promising for Plug Power. The stock experienced significant declines of over 63 percent last year. Whether the stock will be able to turn around and increase by over 100 percent remains to be seen. A capital stake from the SK Group and a joint venture with Renault from 2021 could be decisive factors.

The partnership with SK Group includes plans to bring hydrogen fuel cell vehicles and infrastructure to Asian markets, as explained by The Motley Fool. The joint venture with Renault aims at the European light commercial vehicle market. Ultimately, Plug Power is aiming for a diversified hydrogen ecosystem. However, this is expensive and the company is financially struggling.

So far, achieving profitability has not been successful. While the annual revenue growth, according to The Motley Fool, is over 50 percent, the cost of sales is increasing even faster. Therefore, additional capital is needed, among other things, to cover liabilities in the next 12 months. Considering these factors, a target price of $9.13 US dollars seems to be far off.

What's next for Plug Power remains exciting. Investors should exercise caution in any case. Despite the great potential of the growth stock, the financial situation of the company poses a challenge. The future of the company remains to be seen.