Bloom Energy (BE -0.52%) stock went parabolic, with investors anticipating billions in revenue coming from data center operators using its fuel cells. As with most moves like that, reality is setting in after too much growth was priced into the stock.
Now, Bloom shares have been more than cut in half since they reached an all-time high last month. That includes the 13.8% tumble the stock had today as of 10:15 a.m. ET.
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What will earnings bring?
Bloom will report second-quarter financial results after the market closes today. Even after the stock has crashed from the June high, Bloom shares are still up by over 80% this year. Some investors who are getting nervous that the growth story might not pan out as anticipated are locking in the large 2026 gains, it seems.
The Bloom Energy story relies on big tech continuing to increase capital spending to build out data center compute capacity. Much of the stock's gains came after announcements of plans to build and finance power for data centers, with billions of dollars being allocated. In late June, Bloom and Brookfield Asset Management announced an expansion of their strategic data center partnership. The original $5 billion in planned financing was quintupled to $25 billion.
NYSE: BE
Key Data Points
Yet there are still concerns among investors that those plans will fizzle out, leaving Bloom without billions in orders that were already priced into the stock. Don't expect Bloom management to sound pessimistic in its report later today, though. Hyperscalers and AI infrastructure developers are still announcing spending increases. And while Bloom stock got ahead of itself, the recent correction is exactly what investors should want to see.
If Bloom's capacity expansion plans remain intact with order backlogs filling its production lines, now may be a good time to own Bloom stock at a much more reasonable valuation.
