Bloom Energy (BE -1.57%) stock is more than 40% off its 2026 highs reached in June. That doesn't mean shareholders have had a bad year, though. Bloom shares are still up by about 125% year to date as of this writing.
That juxtaposition makes it even more timely to examine why shares sank 13.5% this week as of Friday morning, according to data provided by S&P Global Market Intelligence. Let's look at whether the drop gives investors who felt they missed out a great chance to own shares now.
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Bloom introduced a new deployment system for its fuel cell systems this week. The company said its new Power Connect system can reduce the time required for on-site power installations by more than 40%. That will help data center operators bring new capacity online sooner, generating revenue and driving higher returns on investment.
One might think such a development would boost the stock, rather than the double-digit drop seen this week. But investors have already bid the stock higher, anticipating growing future business. Bloom Energy expects to generate about $4 billion in revenue this year, doubling last year's sales. But the company is already valued at close to $60 billion, implying strong growth beyond 2026.
NYSE: BE
Key Data Points
Some investors are locking in gains rather than waiting for the company to grow into its valuation. But long-term investors can think differently. Bloom Energy is boosting capacity, envisioning a growing order backlog. That makes the recent pullback a reasonable opportunity to invest in a name that has become a popular choice for data center operators needing reliable power.
