Bloom Energy’s Wild Ride: Why Shares Crashed—Then Recovered—Today

Bloom Energy got whiplashed by the market today—here's why the bleeding stopped.

The Drop: Shorts Strike Again

Traders piled into BE puts after whispers of supply chain snags hit the wires. Stock cratered 12% at open—classic overreaction or justified panic?

The Rebound: Big Money Steps In

Institutional buyers swallowed the dip whole. By noon, shares clawed back half the losses. Another case of hedge funds playing retail like a fiddle.

The Reality Check

No filings. No guidance changes. Just another day in the casino—where fundamentals take a backseat to algos and Twitter rumors. Stay sharp out there.

Bloom Energy is blooming at AI data centers

In Q2, revenue climbed 19.5% to $401.2 million, beating expectations, while adjusted losses per share narrowed from $0.27 to $0.18, missing expectations of $0.08.

Bloom management also said it was looking forward to doubling its production capacity, which will no doubt entail higher costs. But that capacity growth appears to be backed up by strong demand.

Bloom's energy server product can produce electricity from either natural gas or hydrogen via a chemical process without combustion, thereby lowering emissions. The technology appears to be on the brink of much wider adoption, given the need for reliable, cleaner electricity at AI data centers. Last week, Bloom announced a direct partnership with(ORCL -3.67%) in which Bloom will supply on-site power to Oracle data centers within 90 days.

The announcement sent the stock flying, and CEO KR Sridhar noted the partnership may pave the way for more direct deals with AI hyperscalers. On the conference call with analysts, Sridhar noted the Oracle deal is "the first time we as a company are directly interacting with the hyperscaler as our customer...we are the primary source, and it is load following. So it will prove that we can load follow at large scale."

Image source: Getty Images.

Earnings seem to be a "sell-the-news" event

Bloom has exciting AI-fueled growth potential, but since the stock had already rocketed higher last week on the Oracle announcement, it appears investors were eager to take profits on the less-than-perfect quarter. However, the bounce back following today's initial plunge indicates there weren't really any red flags to speak of.

Valuation WOULD be the biggest risk here, as Bloom's stock is quite expensive. Shares trade for 5.5 times sales and 80 times this year's adjusted earnings estimates.