Is Bloom Energy a Buy, Sell, or Hold in 2026?
Key Points
Bloom Energy makes power systems that can be quickly deployed in locations that lack grid access.
Its systems can also provide backup power if the power grid goes down.
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Without going too deep into the technology, Bloom Energy (NYSE: BE) makes solid-oxide systems that generate on-site electricity. This fact positions the company incredibly well to capitalize on the massive spending boom driving the development of artificial intelligence (AI). AI consumes a large amount of electricity, and utilities are struggling to meet demand. But does this fact make Bloom Energy a buy, sell, or hold in 2026?
Buy Bloom Energy
The reason to buy Bloom Energy in 2026 is that the company appears to be at an important inflection point. The main driver is its ability to deliver reliable power in remote locations and to keep the lights on when the grid goes down.
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It is already working with major corporate customers, such as Walmart (NASDAQ: WMT), and major data center customers, such as Amazon (NASDAQ: AMZN). However, it also has partnerships to support future demand with companies like Brookfield Asset Management (NYSE: BAM) and American Electric Power (NASDAQ: AEP).
If you think the AI build-out will last for years, buying Bloom Energy is a way to take advantage of that spending, since it will drive years of rising electricity demand.
Sell Bloom Energy
The problem with Bloom Energy's stock is that investors are well aware of the opportunities ahead. The shares have risen more than 450% over the past year. That's a massive move in a very short period of time. The company's bottom line is in the red under GAAP, but if you use the company's adjusted earnings in 2025, the stock advance has pushed the price-to-earnings ratio up to 165x. That's a shockingly high number. Meanwhile, the price-to-sale ratio is 16x versus a five-year average of 3x.
Essentially, Bloom Energy appears expensive just about any way you look at it. If you have a value bias, you probably won't want to own this stock.
Hold Bloom Energy
That said, there's no particular reason to sell Bloom Energy if you own it and like the company's future prospects. Yes, it is expensive, but if the company's business continues to grow, it isn't unreasonable to think it will grow into its valuation. Indeed, the product backlog grew by more than 140% in 2025 to $6 billion. That is an impressive increase that clearly shows that there is material demand for Bloom's power offerings. You just need to understand that the stock is expensive right now and that could lead to price volatility if market uncertainty increases.
Should you buy stock in Bloom Energy right now?
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Bloom Energy, Brookfield Asset Management, and Walmart. The Motley Fool has a disclosure policy.
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