Why Bloom Energy Stock Crashed Today

Key Points

• Bank of America raised its price target on Bloom Energy stock today.

• BofA still thinks Bloom Energy stock is overpriced.

• And BofA says you should sell Bloom Energy stock.

• 10 stocks we like better than Bloom Energy ›

Bloom Energy (NYSE: BE) stock, one of the first hydrogen stocks to ever go public, is having a rough afternoon Tuesday, down 11.2% through 2:50 p.m. ET. And why?

This may surprise you: It all started when Bank of America raised its price target on Bloom stock today.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

What BofA said about Bloom Energy

BofA raised its price target on Bloom Energy stock to $24 today, as The Fly reports. That sounds like it should be good news -- except for the fact that Bloom already sells for more than $76 per share.

Thus, while BofA is marginally less pessimistic about the shares today than it once was, the investment banker is still effectively predicting Bloom stock will fall 70% in price over the next year.

Unsurprisingly given this forecast, BofA thinks you should sell Bloom Energy stock.

Is Bloom Energy stock a sell?

Bloom stock rocketed this year -- up 650% in 12 months -- on the back of news that companies like American Electric Power and Oracle are using its fuel cells to help provide necessary electric power for artificial intelligence (AI) data centers.

That's the good news.

The bad news is that despite announcing these contract wins, Bloom hasn't raised its guidance for earnings this year, suggesting the contracts may not be profitable for Bloom. Total earnings for the last 12 months at Bloom remain less than $24 million, meaning that, at a market capitalization of $20.2 billion, Bloom stock sells for an astounding 852 times earnings.

That's a very expensive valuation for a company that is still expected to lose money this year and that, even if it turns profitable next year as expected, will be selling for a forward P/E ratio well in the triple digits.

I agree with BofA. This stock's probably a sell.

Should you invest $1,000 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 $661,910!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,125,504!*

Now, it’s worth noting Stock Advisor’s total average return is 1,079% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Bank of America is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.