Shares of Bloom Energy (BE +0.92%) fell 17.3% in November, according to data from S&P Global Market Intelligence. The company behind an innovative fuel cell solution was riding high with the boom in artificial intelligence (AI) stocks, but fell along with the rest of the sector last month. December has been a better month for Bloom Energy, with the share price recovering and getting back close to an all-time high.
Here's why Bloom Energy stock fell 17% in November.
NYSE: BE
Key Data Points
Rising and falling with AI sentiment
Bloom Energy has developed a fuel cell technology that can directly turn fossil fuels like natural gas into electricity, bypassing the traditional energy grid. These fuel cells work perfectly for AI datacenters, which use a boatload of electricity and are running up on supply shortages with the normal utility grid. Bloom fuel cells allow these "AI factories" to directly source electricity onsite.
With demand for electricity growing like gangbusters, Bloom Energy's revenue has grown 129% cumulatively in the past five years, hitting $1.8 billion in the last twelve months. Last quarter saw a huge acceleration in growth, with sales up 57% year-over-year to $519 million. The company also signed a large partnership with Brookfield Asset Management worth $5 billion in the AI field.
So why did Bloom Energy stock fall last month? The stock is tied to the AI investing theme, and popular names in the theme like Nvidia and Palantir finally broke last month. When sentiment turns more pessimistic on AI infrastructure, Bloom Energy stock is going to fall. It is as simple as that.
Image source: Getty Images.
Should you buy Bloom Energy stock?
In just a few short trading days in December, Bloom Energy shares have begun to recover and are nearing all-time highs.
The stock trades at a market cap of $28 billion as of this writing on December 6th, 2025, an expensive valuation compared to its trailing revenue of $1.8 billion. Bloom Energy also has slim gross margins under 30% and barely generates a bottom-line profit. With thin unit economics, the company is unlikely to achieve a bottom-line margin much above 10%, even when the business matures.
Despite its massive growth potential due to the AI trade and its Brookfield partnership, Bloom Energy stock looks overvalued compared to its trailing revenue and earnings potential. Avoid buying this stock even though it down from all-time highs.
