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Why Bloom Energy Stock Popped 13% This Morning

By Rich Smith – Apr 29, 2019 at 12:34PM

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It's not earnings day yet -- but it soon will be.

What happened

Shares of recent fuel cell IPO Bloom Energy (BE -1.05%) were off to the races this morning, rising as much as 13.3% in early trading before retracing to about a 5.8% gain as of 11:40 a.m EDT.

The question is: Why?

Origami dollar folded into an arrow poiinting up

Image source: Getty Images.

So what

There doesn't appear to be any new news out on Bloom Energy today. No upgrades, no downgrades, no initiations of coverage -- not even a shift in price target, according to our friends at analyst watcher StreetInsider.com (subscription required).

What there is, however, is the prospect of potential profits from the shares after Bloom Energy reports its fiscal Q1 2019 financial results a week from now, on May 6. Chances are investors are jumping on board Bloom stock in anticipation of some more big gains.

Now what

In February, analysts at Raymond James predicted that 2019 will be the year Bloom Energy achieves breakeven profits under GAAP, and turns from a cash flow negative company into one generating sustainable and growing free cash flow.

Q1's report could provide the first clues that Raymond James was right about that, and send Bloom Energy stock off to the races (again). Tune in after close of trading on Monday, May 6, to find out what Bloom's own management has to say about that.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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