Shares of Bloom Energy (NYSE:BE) climbed another 10.4% in early trading Thursday, continuing a great week for the stock. But shares settled as the day went on and closed down 3.3%.
Why the pop and drop? The simple answer is that the euphoria and momentum that drove Bloom Energy's rise Wednesday faded today. Shares jumped on Wednesday on a very encouraging partnership with SK Engineering & Construction in South Korea.
Today, shares of the fuel cell maker started strong in part because analyst Stephen Byrd at Morgan Stanley reiterated an overweight (buy) rating on the stock and added a price target of $21. An upgrade like that can give a boost to shares short term, but that bump often doesn't last.
Bloom Energy's big jump on Wednesday just seemed to lose steam today, and I wouldn't take it as much more than that. Around big news days, shares in volatile stocks like Bloom can move wildly in one direction or the other. Right now they're moving lower, but don't forget that shares have more than doubled this year and have managed to be one of the best-performing renewable energy stocks. If the momentum continues for hydrogen, the stock's great run could continue.