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Why Bloom Energy's Shares Popped 10% on Wednesday

By Travis Hoium - Updated Feb 3, 2021 at 4:34PM

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Wall Street thinks this company is entering a multi-trillion dollar market.

What happened 

Shares of hydrogen fuel cell company Bloom Energy (BE 10.35%) jumped as much as 10% in trading on Wednesday after getting a positive note from an analyst. Shares were up 5.7% at 3:30 p.m. EST. 

So what

Bernstein analyst Neil Beveridge initiated coverage on Bloom Energy's stock with a market perform rating and a $41 price target, a level the stock traded above briefly today. The call may be a little underwhelming, but it's the $2.1 trillion opportunity that was a big number to investors. 

Bank of fuel cell servers from Bloom Energy.

Image source: Bloom Energy.

Bloom's management has talked about a multi-trillion dollar market opportunity before, but coming from a third-party, there's a little more weight behind the number. And with investment in grid services and renewable energy, this could be a top-performing, renewable energy stock for long-term investors. 

Now what

As nice as it is to get a bounce after an analyst report, investors should be more focused on the fundamentals from Bloom Energy. The company reports earnings a week from today on Feb. 10, 2021, and that's when the rubber will really hit the road. Not only should investors be looking at the company's revenue and backlog for existing products, but these metrics will be key to understanding how the electrolyzer and hydrogen fuel cell businesses are shaping up. That's where the real growth opportunity for Bloom Energy can be found.  

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