Bloom Energy: A Flicker in the Darkness

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Three days ago, the soothsayers at Roth Capital whispered to those who listen – buy Bloom Energy. A curious urging, given the usual silence of the market. Three days later, Bloom has delivered its numbers… and it seems, for a fleeting moment, Roth wasn’t entirely wrong. A rare alignment of prophecy and profit.

Last night, Bloom reported a paltry $0.45 per share, scrubbed clean of unpleasant truths, on sales of $777.7 million. Enough to momentarily stir the pot, enough for the market to twitch. The stock, predictably, has offered a meager rise, about 1% as of this hour. A breadcrumb for the hopeful.

Bloom Energy’s Quarter: A Mirage of Growth

It could have been a feast. The stock briefly leaped 12% this morning, then… retreated. Most of its gains surrendered back to the void. Why this sudden exhaustion? The question isn’t about triumph, but about the hollowness beneath it.

Profitability, or the persistent lack of it, is the worm in the fruit. Q4 sales climbed 36% year over year – a number that sounds impressive until you look closer. The gross profit margin shrank, a quiet erosion of substance. Operating margin? Reduced by 700 basis points to a mere 11.3%. They speak of “adjusted” earnings, but the true measure, calculated by those who insist on honesty, showed a near-zero return. Breakeven. A precarious balance for a company chasing the sun.

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A Buy? Or Just Another Empty Promise?

The full year’s results are even more telling. Sales grew 37% to $2 billion, a respectable climb. But the operating margin remained stubbornly low at 3.6%. And on the bottom line? A loss of $0.37 per share – a threefold increase in their failings compared to the previous year. A widening chasm, masked by optimistic projections.

There is a glimmer, admittedly. Q4 showed a slight pulse, a flicker of strength. The company forecasts 60% sales growth in 2026, reaching $3.2 billion. Better margins, they promise. And (non-GAAP) earnings of $1.40 per share. A comforting tale for those who choose to believe.

But consider this: at a $140 stock price, Bloom trades at a multiple of 100 times earnings. A kingdom built on air. Too expensive for a man who understands that true wealth isn’t measured in promises, but in the solid weight of return. It is a gamble, a wager on a future that may never arrive. And in this world, those who bet on shadows often find themselves in the dark.

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2026-02-06 18:22