Bloom Energy Plummets 15% as AI Data Center Deal Collapse Sparks Selloff
Bloom Energy (BE) shares cratered 15.5% in afternoon trading March 6 after Oracle and OpenAI abandoned plans for a Texas-based AI data center expansion. The abrupt reversal triggered a rapid deleveraging event among momentum traders who had pushed BE up 11.83% over the prior month.
The fuel cell manufacturer now trades at a stratospheric 119.41 forward P/E ratio—nearly 6.5x the industry average—leaving it vulnerable to growth narrative disruptions. Analysts maintain a Hold rating despite projected 200% YoY EPS growth in Q1, suggesting skepticism about valuation sustainability.
Market technicians note the selloff accelerated precisely when Bloomberg's report hit terminals, with over 80% of the day's volume occurring post-news. The reaction underscores how tightly BE's premium valuation was tethered to AI infrastructure demand expectations.
