Why Bloom Energy Shares Are Tanking Ahead of Earnings
Key Points
Bloom Energy stock is about 50% off its recent record high.
The drop may finally be giving investors a more reasonable valuation.
Bloom management is likely to remain optimistic in its call with investors later today.
- 10 stocks we like better than Bloom Energy ›
Bloom Energy (NYSE: BE) stock went parabolic, with investors anticipating billions in revenue coming from data center operators using its fuel cells. As with most moves like that, reality is setting in after too much growth was priced into the stock.
Now, Bloom shares have been more than cut in half since they reached an all-time high last month. That includes the 13.8% tumble the stock had today as of 10:15 a.m. ET.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
What will earnings bring?
Bloom will report second-quarter financial results after the market closes today. Even after the stock has crashed from the June high, Bloom shares are still up by over 80% this year. Some investors who are getting nervous that the growth story might not pan out as anticipated are locking in the large 2026 gains, it seems.
The Bloom Energy story relies on big tech continuing to increase capital spending to build out data center compute capacity. Much of the stock's gains came after announcements of plans to build and finance power for data centers, with billions of dollars being allocated. In late June, Bloom and Brookfield Asset Management announced an expansion of their strategic data center partnership. The original $5 billion in planned financing was quintupled to $25 billion.
Yet there are still concerns among investors that those plans will fizzle out, leaving Bloom without billions in orders that were already priced into the stock. Don't expect Bloom management to sound pessimistic in its report later today, though. Hyperscalers and AI infrastructure developers are still announcing spending increases. And while Bloom stock got ahead of itself, the recent correction is exactly what investors should want to see.
If Bloom's capacity expansion plans remain intact with order backlogs filling its production lines, now may be a good time to own Bloom stock at a much more reasonable valuation.
Should you buy stock in Bloom Energy right now?
Before you buy stock in Bloom Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bloom Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 28, 2026.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and Brookfield Asset Management. The Motley Fool has a disclosure policy.
Recommended Articles
