Please ensure Javascript is enabled for purposes of website accessibility

Why Bloom Energy Stock Rose Today

By Howard Smith - Updated Apr 23, 2021 at 1:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The fuel cell maker's stock has been recovering from a recent plunge.

What happened

Shares of on-site power generation company Bloom Energy (BE 2.30%) hit a five-month low recently, but are continuing to bounce off that level today. As of 12:10 p.m. EDT, Bloom shares were up 5.4% above Thursday's closing price. 

So what

Today the company announced new leadership appointments for its international growth plans. That in itself isn't likely the reason the stock jumped today. But earlier this week, energy giant Chevron and automaker Toyota announced an alliance to grow large-scale use of hydrogen for fuel.

Bloom is a member of "Hydrogen Forward," a separate group of 11 companies focused on advancing hydrogen development in the U.S. But the new global expansion efforts signaled by Bloom's leadership appointments today indicate Bloom wants to also grow its hydrogen business outside the U.S.

hydrogen energy storage indicated by large storage container

Image source: Getty Images.

Now what

As part of its global initiative, Bloom said it is opening a new office in Dubai, United Arab Emirates. The company said in a statement its strategic growth plan aims "to unlock value by sharpening focus on new global markets." The new international leadership team consists of industry veterans who will oversee expansion into Australia and Southeast Asia, lead its commercial strategy in Europe, manage partnerships in Germany, and lead new strategic opportunities in Africa. 

The Chevron and Toyota alliance will focus on "hydrogen-related public policy measures that support the development of hydrogen infrastructure," as well as further research in hydrogen powered transportation and storage solutions. 

While that alliance doesn't directly involve Bloom Energy, any company with a stake in developing a hydrogen economy could benefit, and it gives investors confidence to add positions in names like Bloom. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bloom Energy Corporation Stock Quote
Bloom Energy Corporation
$16.88 (2.30%) $0.38
Toyota Motor Corporation Stock Quote
Toyota Motor Corporation
$155.47 (0.84%) $1.30
Chevron Corporation Stock Quote
Chevron Corporation
$146.51 (1.20%) $1.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.