Bloom Energy Stock Surges: What’s Fueling the Rally Today?

Green energy plays are back in vogue—and Bloom Energy's stock is riding the wave. Here's why investors are suddenly bullish on this fuel cell contender.

The hydrogen hype cycle strikes again

Another round of clean energy subsidies hits the wires, sending speculative money chasing the usual suspects. Bloom's 20% pop smells like short covering mixed with FOMO.

Wall Street's renewable darling du jour

Analysts scramble to upgrade price targets after a single contract win. Never mind the cash burn—this time it's different, right?

The cynical take

Another pump before insiders' lockup periods expire? The charts say 'buy' while the fundamentals whisper 'bagholder.' Choose your adventure.

Image source: Getty Images.

Bloom isn't Plug, and it also isn't Ballard

I jest, of course. But it turns out there isn't much news specific to Bloom Energy that might be moving the stock today. What is, is a bit of news on Bloom's rivals this week.

(PLUG 7.47%), for example, recently reported Q2 earnings showing sales rising 21% and gross losses on sales improving. That could be a promising development for other fuel cell companies, but to be honest, the fact that Plug also reported a huge $0.20 per share loss -- worse than Wall Street expected -- dampens my enthusiasm a bit.

Separately, Bloom rival(BLDP 7.80%) scored a near-50% price target hike from Roth Capital on Monday. Again, the improved sentiment on Ballard might translate to Bloom stock. But Roth didn't actually recommend buying Ballard stock, and warned that the "environment" for fuel cells remains "difficult."

Is Bloom Energy stock a buy?

From where I sit, that's not good news for Bloom Energy stock at all. Speaking of which, Bloom stock costs $44 and only earned $0.11 per share over the past 12 reported months. That's a P/E ratio of 400, folks, which is quite a lot of money to be paying for a stock that's rising on no good news particular to itself. And considering the company has three times more debt than cash on its balance sheet, Bloom's valuation is arguably even richer than that.

Ultimately, Bloom stock looks more like a sell than a buy to me.