Bloom Energy: Buy, Sell, or Hold?

Bloom Energy (NYSE: BE) is on an absolutely incredible run. The solid-oxide fuel cell company skyrocketed more than 80% to begin 2026. As of March 5, the stock is trading above $150 and has risen an astounding 550% in the past 12 months.

Of course, this then raises the question of whether investors should continue buying Bloom. Or perhaps, is it more advantageous to hold or sell at this moment? There's a lot to be excited about when it comes to Bloom Energy, but the enthusiasm has caused the stock to reach a level that may not make sense for many investors.

Bloom is in high demand

The demand for Bloom Energy is staggering. The San Jose, California-based company provides a form of clean energy that is a needed solution amid a rapidly evolving energy industry. Artificial intelligence (AI) data centers and industrial electrification are driving Bloom's record revenue.

The solid-oxide fuel cell market is anticipated to reach $11.6 billion in the next four years, growing at a CAGR (compound annual growth rate) of more than 31%. The market growth, paired with Bloom's $20 billion backlog, is a positive sign that the company will continue to improve its balance sheet for the next several years.

Image source: Getty Images.

The company also has a competitive edge in its ability to deliver faster than its competitors. On a massive fuel cell system order from Oracle, Bloom was able to deliver in just 55 days. This installation timeline is far faster than traditional grid connections, which can take years.

Grid-less power is what AI data centers truly need to meet their incredible demand. That's another reason why Bloom Energy is scooping up big tech customers, and the backlog continues to lengthen. The massive backlog poses some execution risk, but it ultimately provides better visibility into future revenue.

Bloom's reported revenue of just over $2 billion in 2025, a 37.3% increase year over year. Gross margin and operating income also increased for the year. The company also reported its second consecutive year of positive free cash flow. Bloom generated $113.9 million in cash flow in 2025.

The company's fourth-quarter earnings per share crushed analysts' expectations. Much of the excitement surrounding Bloom Energy stems from the October 2025 announcement that it is partnering with Brookfield Asset Management to the tune of $5 billion. Bloom also plans to scale its capacity from 1 gigawatt (GW) to 2 GWs by the end of this year. By all accounts, Bloom is booming.

Bloom's stock is in the stratosphere

The stock's forward P/E (price-to-earnings) ratio is now a sky-high 119. The PEG (price-to-earnings-growth ratio) is a whopping 4.21. The enterprise-value-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio is also exceptionally high. I would consider waiting for a dip or correction before buying, as it appears much of the future growth is already baked into Bloom's current price.

We can all agree Bloom's long-term outlook is promising. Along with its exceptional quarterly and full fiscal year results, Bloom also increased its 2026 outlook. The company now expects revenue to reach $3.1 billion to $3.3 billion and EPS (earnings per share) of $1.33 to $1.48. Several Wall Street analysts raised their price targets, but the targets are generally lower than the price at which the stock is trading as of March 5.

Should you buy, sell, or hold Bloom Energy?

The answer to whether you should buy, sell, or hold Bloom Energy stock right now is multifaceted. If you were fortunate enough to buy Bloom before its 500% run, now could be a good time to take some profit off the table.

If you are not yet a Bloom investor, the valuation metrics aren't appealing at this time. Bloom's stock is ahead of the company's fundamentals, so I would hold off on buying until the stock price becomes more reasonable.

Catie Hogan has positions in Oracle. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.