EOS Energy Enterprises (EOSE +2.70%) is a name many investors might not know. The stock gained some momentum late last week after pre-announcing a first-quarter revenue and business update.
But a news release has the stock flying even higher this week. Shares of the battery energy storage firm have surged 26.5% this week as of Friday morning, according to data provided by S&P Global Market Intelligence. That's because investors think the stock might mirror Bloom Energy's parabolic move.
Image source: Getty Images.
On-site power for AI
Bloom stock has rocketed by more than 1,000% over the last year, as it announced deals to deploy its fuel cell solutions to power artificial intelligence (AI) data centers. EOS Energy announced this week a joint development agreement that will also offer hyperscalers and data center operators a solution to power their facilities.
NYSE: BE
Key Data Points
EOS now plans to offer data centers another power solution by creating and implementing private power infrastructure for AI, in partnership with TURBINE‑X Energy. The companies plan to use a new model to deliver reliable, on-demand energy for hyperscale data centers and other critical operations on fast-tracked timelines.
EOS Energy began the week as a small-cap stock valued at under $2 billion. The stock surge has now lifted its market cap to over $2.4 billion. That still pales in comparison to Bloom's nearly $60 billion valuation, however. Investors should be careful not to get ahead of themselves, though.
NASDAQ: EOSE
Key Data Points
EOS expects about $56.5 million in first-quarter revenue. That's coming from record expected quarterly shipments and battery output. It's comparable to last quarter's $58 million in revenue. It will take a significant increase in orders and production to justify the boost in market cap. Investors should be patient as EOS stock could very well pull back from this week's euphoria.
