In contrast to the S&P 500, which is trading flat today, shares of Bloom Energy (BE 1.49%) are moving sharply higher. Investors appear motivated to power their portfolios with the fuel cell specialist thanks to a customer's intent to make a sizable purchase.
As of 11:24 a.m. ET, shares of Bloom Energy are up 10.7%.
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There are 2.65 billion reasons why investors are excited about Bloom today
Taking a significant step closer to developing a fuel cell power facility, American Electric Power (AEP +0.75%) announced that one of its units plans on purchasing $2.65 billion worth of solid oxide fuel cells from Bloom Energy, according to a report from Reuters.
NYSE: BE
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The news today hearkens back to an agreement the companies announced in 2024, when American Electric Power revealed plans to initially purchase 100 megawatts (MW) of solid oxide fuel cells from Bloom Energy with the option to acquire an additional 900 MW, related to the development of power generation facilities for data centers providing the infrastructure for artificial intelligence (AI) computing.
With a steep price tag, Bloom Stock is anything but a bargain
Trading at 125 times forward earnings, Bloom Energy stock is hardly inexpensive right now. But for investors who are less interested in value stocks and more motivated to gain exposure to the fuel cell and hydrogen industry, Bloom Energy represents one of the leading options.
