Insights

Why Bloom Energy Stock Fell Over 4% Today

What happened
Shares of fuel cell technologist Bloom Energy (NYSE: BE) were in retreat along with the market overall today. The stock was down 4.5% as of 12:30 p.m. ET, compared to a 1.5% drop for the S&P 500 and a 2.6% fall for the Nasdaq Composite.  
Image source: Getty Images.

So what
The specific catalyst for the sell-off came from social media company Snap (NYSE: SNAP), which said last night it would grow less than its previous forecast for year-over-year revenue expansion of 20% to 25%.
A company that makes money primarily off of ads has little to do with Bloom Energy and its fuel cells that help solve energy needs for industrial properties (everything from data centers to hospitals to grocery stores). However, investors were spooked by the macroeconomic and geopolitical headwinds cited by Snap, and fears were kindled that a wider slowdown is in store for the economy at large.
Now what
Bloom Energy, for its part, is coming off of a record year of system placements as organizations look for efficient energy solutions (including hydrogen and converting waste to energy). For full year 2022, the company is anticipating revenue of $1.1 billion to $1.15 billion, up about 13% from last year. It’s also investing in new manufacturing capacity to meet rising demand for its energy fuel cell systems.  
However, bear in mind Bloom operates in the red (although it expects to turn a profit on an adjusted basis this year). Companies that don’t turn a profit yet are currently out of favor in the present market dynamic that is grappling with higher interest rates. If Bloom can execute on its expansion plans and begins to reach a more profitable scale, this stock could be a great long-term value (it currently trades for 2.7 times trailing-12-month sales). In the meantime, though, expect heightened volatility from this energy stock.
Nicholas Rossolillo and his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Shares of fuel cell technologist Bloom Energy (NYSE: BE) were in retreat along with the market overall today. The stock was down 4.5% as of 12:30 p.m. ET, compared to a 1.5% drop for the S&P 500 and a 2.6% fall for the Nasdaq Composite.  

Image source: Getty Images.

So what

The specific catalyst for the sell-off came from social media company Snap (NYSE: SNAP), which said last night it would grow less than its previous forecast for year-over-year revenue expansion of 20% to 25%.

A company that makes money primarily off of ads has little to do with Bloom Energy and its fuel cells that help solve energy needs for industrial properties (everything from data centers to hospitals to grocery stores). However, investors were spooked by the macroeconomic and geopolitical headwinds cited by Snap, and fears were kindled that a wider slowdown is in store for the economy at large.

Now what

Bloom Energy, for its part, is coming off of a record year of system placements as organizations look for efficient energy solutions (including hydrogen and converting waste to energy). For full year 2022, the company is anticipating revenue of $1.1 billion to $1.15 billion, up about 13% from last year. It’s also investing in new manufacturing capacity to meet rising demand for its energy fuel cell systems.  

However, bear in mind Bloom operates in the red (although it expects to turn a profit on an adjusted basis this year). Companies that don’t turn a profit yet are currently out of favor in the present market dynamic that is grappling with higher interest rates. If Bloom can execute on its expansion plans and begins to reach a more profitable scale, this stock could be a great long-term value (it currently trades for 2.7 times trailing-12-month sales). In the meantime, though, expect heightened volatility from this energy stock.

Nicholas Rossolillo and his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info