September 12th, 2022 | 11:59 CEST
Plug Power, Meta Materials, Palantir - Depot booster through growth stocks
Table of contents:
Plug Power - Amazon deal brings new fantasy
Plug Power wants to map the entire value chain of the hydrogen economy. The group is approaching billions in sales but is still in the red. The entire sector is getting a tailwind from rapidly rising energy costs, which have known no bounds since the outbreak of the Ukraine conflict. In Europe in particular, it is becoming clear that a more diversified approach will be needed in the future. Ideally, independent of fossil fuels. Renewable energies are, therefore, increasingly in the spotlight. Green hydrogen stores the energy that renewable energies produce. The problem for the hydrogen industry is still the relatively high price, but with the expansion of renewable energies, this will drop significantly in the future.
Amazon has also recognized the signs of the times. On August 25, Plug Power announced that the cooperation would be intensified. From 2025, Plug Power will supply Amazon with green liquid hydrogen. This brings the Company a big step closer to its goal of generating USD 3 billion in sales by 2025, just as Amazon aims to be emissions-free by 2040. In addition, Amazon may acquire 16 million shares of Plug Power. The group also has a presence in Europe. On September 8, an order from Lhyfe for 10 electrolyzers was announced, each with a capacity of 5 megawatts.
Operationally, things are going well, and the multi-billion dollar climate package supports the hydrogen infrastructure's expansion. Green hydrogen production is to be subsidized by up to USD 3 per kilogram. That would significantly improve profitability. The good news pushed the stock from USD 12.70 in mid-May to USD 31.56 on August 25. Currently, one share costs USD 29.92. Due to the current hydrogen hype, one should wait for a setback before entering.
Meta Materials - Sales grow by over 400%
Meta Materials has the potential to change the world. The Canadian company has brought high-performance functional materials and nanocomposites (metamaterials), which do not occur in nature, to mass production. The innovative strength is reflected in 450 patents filed in 103 product families. Already, there are 288 issued patents, with the last two US patents on next-generation battery separators issued in July. The manufactured materials deliver more but require fewer resources, making them attractive to various applications and industries. Thus, the products can be used in many megatrends, such as 5G, electric vehicles, medicine, the Internet of Things, energy or aerospace.
In electromobility, what matters is range, charging speed and safety. Meta Materials, with its NPORE brand, has nanoporous ceramic separators in development that significantly increase battery safety. In the field of lithium-ion batteries, there is also the possibility of replacing copper foil with metamaterials, which would reduce the weight by about 80%. Here, developments will be interesting in the coming months. The latest quarterly figures show that commercialization is slowly picking up speed. Approximately USD 3.3 million was raised, up 432% YOY. Compared to the first quarter, there was an increase of 12%. Currently, the Company is trying to increase the web width and speed of production to further reduce the cost per sqm.
On July 26, Manos Spanos was hired as Chief Business Officer. He is expected to drive business development, forge partnerships and, most importantly, accelerate sales growth. On the Board of Directors, Jack Harding, an old hand in the chip industry, will take over as Chairman. His predecessor Ram Ramkumar is retiring but will provide strategic advice to the Company over the next 2 years. The share price came under further pressure from the latest capital measure at USD 1.35. In total, the Company was able to raise USD 50 million. The share is currently trading at USD 0.839. Management is under pressure because the share is listed on the NASDAQ, where quotations of less than USD 1.00 are not permitted in the long term. Interested investors should not miss the company presentation at the 4th International Investment Forum on September 27.
Palantir - At break-even point
Palantir Technologies is riding the Big Data wave. CEO Alex Karp said at the World Economic Forum in Davos, "The core mission of our company is to make the West, especially America, the strongest power in the world to ensure peace and prosperity." The Company tries to do this by processing large amounts of data from various sources and then giving it to government agencies, intelligence services or commercial customers. The contacts with the intelligence services add a touch of secrecy to the Company.
In Corona times, the software platform Foundry was made available to the authorities free of charge, making it possible to gain new customers. However, the software platforms are not only well received by the authorities, but more and more commercial customers are also relying on Palantir's software. The last quarterly figures, which show that the customer base has increased from 169 to 304, are a good indication of this. However, the Company was slightly in the red. While many other tech companies are laying off employees, Palantir continues to hire.
Of course, this costs money, but if one wants to grow long-term, one has to invest. In addition, the US government has postponed a large order, so the lost revenue is only delayed, not canceled. Information will become increasingly important in the future, so despite the weakness in the stock, the group faces a bright future. At the beginning of August, one share cost USD 11.62. At the moment, you can get it for USD 7.79. Accordingly, the Company has a market capitalization of around USD 16 billion.
Growth stocks are extremely volatile. The shares jump quickly when the news is good, but they sometimes collapse when the results are alarming. As an investor, one has to be aware of this. Plug Power is riding the GreenTech wave right now and has already made a name for itself worldwide. Meta Materials has a lot of potential. It needs to be taken to the streets now. Palantir is already at break-even and is successfully expanding its customer base. All three companies have the potential to create something great in the long term.
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