In this Motley Fool Live segment from "The High Energy Show," recorded on June 7, Fool.com contributors Jason Hall and Travis Hoium look at the positive trends for Bloom Energy (BE 7.26%).
Jason Hall: It's a company that has generated an operating profit on a cash flow basis. It is cash burn right now. But they're really spending a lot of money. R&D spend has gone up pretty substantially. They've got just under $500 million in cash, and they're using that cash right now to really invest in R&D. This is, I think one of the probably the riskiest on here in terms of what's going to happen. But I think it has maybe the most upside of any other stock on here in the next 10 years.
Travis Hoium: Here's the financial revenue. I think they projected about $1.1 billion in revenue in 2022. They are expected to pass that billion-dollar mark. Compare that to companies like Plug Power and Ballard. Other names in the fuel cell space or the hydrogen space. This is definitely the most established and biggest. They are not making money from a net income basis, but these are the trends that I watch in companies like these, is are your margins going up? [laughs] Like if they're not and you are not profitable, you're really in trouble, and then they are expecting to be on a non-GAAP basis, operating margin above breakeven, I think slightly positive this year. Those numbers are trending in the right direction. There's a few trends that are driving that their costs are coming down, faster than their reduction in what they're charging customers. So they have a little bit of expansion there, and then they're getting to more scale. I think a couple of positive trends.
