Pink-hot Plug Vitality (NASDAQ:PLUG) stock plunged in mid-August after extensively revered short-seller Citron Evaluation centered the stock in a Twitter (NYSE:TWTR) publish which primarily often usually known as PLUG stock an over-hyped, overvalued bubble stock that may collapse as shortly as extra to $7.Savvy patrons shouldn’t pay pretty a bit consideration to this publish.Citron’s assaults in route of the stock and agency are each inaccurate or misrepresented, and Citron has a protracted historic earlier of being fallacious on PLUG stock along with utterly utterly utterly totally utterly utterly completely different rising, hyper-growth stocks with a ton of momentum.Plus, the fundamentals underlying Plug Vitality stock protect vigorous. The valuation is a bit stretched. Nonetheless it’s nothing to stress about all by the use of the huge picture.Internet web, I say ignore Citron, alter to the rally and buy on dips.Proper appropriate relevant applicable appropriate correct proper right here’s a deeper look.Plug Vitality Will Not Miss Earnings SteeringThe very very very very very very very very first thing Citron says about Plug Vitality all by the use of the Twitter publish is that the company “will miss 2020 revenue guidance by 40%”.That’s usually a terribly outlandish concern to say, which may virtually positively present wildly inaccurate. For only a few causes.First, Plug Vitality has topped earnings estimates for 5 straight quarters, and 7 of the last word phrase phrase eight quarters, along with a sturdy 20% earnings beat remaining quarter. To suppose the company is now going to miss third and fourth quarter earnings estimates by an infinite mark seems far-fetched.Second, the clear vitality revolution is gaining momentum all over the place, notably all by the use of the hydrogen vertical, the place technological developments are turning hydrogen tech proper right into a stupendous, cost-effective numerous for optimistic high-usage, condensed end-markets (like warehouses with hydrogen forklifts). Plug Vitality’s progress trajectory speaks to this. Yr-to-date, the company’s revenues are up virtually 40%, on excessive of 32% earnings progress remaining 12 months. As shortly as extra, to suppose that this momentum goes to instantly dry up seems merely as far-fetched.Third, Plug Vitality is doing your whole whole objects acceptable inside the current day so defend sturdy momentum. The company is launching new merchandise, making strategic acquisitions, rising into new end-markets, landing new affords, so on and so forth — the sum of which broadly counsel that this agency’s string of revenue-beating quarters will persist, not end.Fourth, to make it doable for Plug Vitality to miss 2020 earnings steering by 40%, the company should report primarily a 50% drop in second half 2020 revenues, after first half revenues are up about 40%. That kind of cliff drop in earnings progress merely doesn’t happen all that incessantly, and it very virtually positively obtained’t happen with Plug Vitality.R&D is Not PaltryThe second concern that Citron says about Plug Vitality is that “R&D has been paltry”.This isn’t the case.R&D {dollars} in every 2018 and 2019 measured spherical $34 million, and are on observe to exceed $40 million this 12 months. Excluding 2019 (which is a historic anomaly), that represents barely beneath 20% of full revenues — which is, as you’d depend on, monumental for any agency.By comparability, Tesla R&D spend as a p.c of full revenues was about 5% remaining 12 months.In the long run, scale performs an element associated appropriate relevant applicable appropriate correct proper right here. On a raw buck basis, Tesla spends methodology over Plug Vitality on R&D. Nonetheless pointing to scale as a carry out why R&D at Plug vitality is paltry is flawed.The exact actuality is that, for a corporation of its dimension, Plug Vitality spends as pretty a bit on R&D as anyone else, and arguably extra.No Early Stage Progress Agency is WorthwhileThe third concern Citron says about Plug Vitality is that the company has certainly not generated a earnings.True. It hasn’t.Nonetheless Tesla didn’t purchase this on a relentless basis until 2019. Actually, there are ton of very sturdy progress corporations contained available on the market — like Shopify (NYSE:SHOP), Wayfair (NYSE:W) and Roku (NASDAQ:ROKU) — who’ve nonetheless to sustainably generate earnings, nonetheless which soared on Wall Street.The exact actuality is that early stage progress corporations shouldn’t be worthwhile. They need to be inserting all their a reimbursement into the enterprise, spending every dime they need to execute on the large selections ahead of them.Plug Vitality isn’t any exception.The company has an unbelievable utterly utterly totally utterly utterly completely different in entrance of it in relation to the hydrogen financial system, and administration is executing flawlessly in route of that probability by worthwhile new enterprise, creating next-gen tech, launching new merchandise and making strategic acquisitions.So don’t concern about earnings inside the current day. They’ll embrace scale. An entire lot as they did at Tesla.The CEO is Selling, Nonetheless That’s Not WorrisomeThe fourth concern Citron says about Plug Vitality is that “CEO Andy Marsh has sold 95% of his position at an average price of less than $7 per share”.That’s moreover true. Plug Vitality’s CEO has been selling a ton of stock since February.Nonetheless this selling is totally anticipated, par-for-the-course and certainly not that worrisome.Insiders promote stock recurrently. Actually, that’s all they’ve been doing for a lot of quarters over at Fb (NASDAQ:FB), Netflix (NASDAQ:NFLX), The Commerce Desk (NASDAQ:TTD), Sq. (NYSE:SQ) and an excessive amount of utterly utterly utterly totally utterly utterly completely different red-hot, high-quality corporations with hovering stock prices.When stocks take off like rocket ships, insiders promote often. It’s what they do. And it’s actually nothing to be all that frightened about.If this selling by Marsh was accompanied by a breakdown all by the use of the fundamentals, then I’d be frightened.Nonetheless it’s not. Actually, the choice is true.Plug Vitality Stock is Costly, nonetheless Not OvervaluedThe fifth, and shutting concern, Citron says about Plug Vitality is that PLUG stock trades at a “100% premium on EV/sales” to TSLA stock.Per YCharts, this isn’t utterly true. PLUG stock trades at 21-times EV to trailing product product product product sales. TSLA stock trades at 15-times EV to trailing product product product product sales.Nonetheless the argument nonetheless significantly holds. PLUG stock is costlier that TSLA stock.This premium is a byproduct of 1 easy actuality: Plug Vitality is methodology earlier in its progress narrative than Tesla, and subsequently, rising fairly extra shortly.Tesla is a $400 billion clear vitality giant that already has the very best selling electrical cars on this planet and regarded one among world’s largest picture voltaic corporations. Plug Vitality, contained contained within the meantime, is a $5 billion clear vitality agency that’s merely starting to disrupt legacy vitality alternatives with its hydrogen tech.To that end, all by the use of the second quarter of 2020, Tesla’s revenues actually dropped 5% year-over-year. Contained all through the equal quarter, Plug Vitality’s revenues rose 18%. Over the subsequent 5 years, Tesla is anticipated to develop revenues at a 24% compounded annual progress price. Over that exact same stretch, Plug Vitality is anticipated to develop revenues virtually twice as shortly, at a 45% compounded annual progress price.So, is PLUG stock costlier than TSLA stock? Constructive.Ought to it’s? Moreover, optimistic, which suggests the valuation elements launched up by Citron don’t defend pretty a bit water.A Poor Historic earlier with Progress StocksIt’s worth mentioning that Citron Evaluation has a poor historic earlier of shorting hyper-growth momentum stocks.That’s comparable short-seller that frequently usually known as Shopify a “get rich quick” scheme as shortly as extra in 2017, when the stock was in search of and promoting spherical $100, and made a daring handle for the stock to retreat to $60. It has since risen elevated than 10X to over $1,000.It’s moreover the equal short-seller that frequently usually known as Wayfair terribly overvalued in 2015, and slapped a $10 truthful value on the stock. Wayfair stock inside the current day trades above $300.And the equal short-seller that frequently usually known as Roku “uninvestable” in January 2019. ROKU stock has surged about 4X since then.Citron was moreover lifeless fallacious on its bearish deal with a pair of picture voltaic stocks as shortly as extra in September 2019: SolarEdge (NASDAQ:SEDG) and Enphase Vitality (NASDAQ:ENPH). Every of those stocks are up elevated than 100% since Citron talked about they’ve been going to interrupt down.The concepts actually goes on and on.I’m not saying you shouldn’t take heed to Citron. I really like pretty only a few the stuff they publish, and agree with it as a rule.Nonetheless the company has a observe report of being fallacious on hyper-growth momentum stocks, incessantly underestimating merely how pretty a bit firepower they’ve, and sure the most effective strategies whereby revolutionary and disruptive their enterprise models and utilized sciences are.I take into accounts PLUG stock falls into that class.Bottom Line on PLUG StockIn relation to Plug Vitality stock, don’t take heed to Citron.That’s usually an organization — with a poor observe report of shorting hyper-growth, early-stage momentum stocks like PLUG — making false and misrepresented claims only a few enterprise that’s utterly on hearth acceptable now.PLUG stock may be weak for only a few days.Nonetheless it’ll lastly shake off this momentary headwind.And as shortly attributable to it does, PLUG stock will get as shortly as extra into rally mode as the company sustains giant progress behind its sturdy portfolio of value-additive and cost-effective hydrogen tech alternatives.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for just a few years, beforehand working at pretty quite a few hedge funds and throughout the interim working his personal funding fund in San Diego. A Caltech graduate, Luke has incessantly been acknowledged as top-of-the-line stock pickers on this planet by pretty quite a few utterly utterly utterly totally utterly utterly completely different analysts and platforms, and has developed a standing for leveraging his know-how background to go searching progress stocks that ship improbable returns. Luke may even be the founding father of Implausible, a social discovery agency backed by an LA-based web enterprise company. As of this writing, he was prolonged SHOP, ROKU, FB, NFLX, TTD, and SQ.