Why Bloom Energy Stock Decided to Take a Dive Today

Bloom Energy (BE), the once-untouchable hydrogen stock that was supposed to bring the future to your doorstep (in a clean, eco-friendly way), has just had a bit of a rough afternoon. As of 2:50 p.m. ET, it’s down a heart-wrenching 11.2%. And why, you ask? Buckle up, kids – it’s not what you think.

It all started with Bank of America throwing a tiny party for Bloom Energy. They raised their price target. Yes, you heard that right. They raised it, but you’ll want to sit down for this: the new target is a modest $24. I know, it sounds like they’ve discovered some hidden treasure, right? Except for one tiny thing-Bloom Energy is trading at more than $76 a share. You might call it a high-flying kite, and Bank of America’s like, “Yep, here’s the string, but don’t expect it to stay up there for long.”

What Did BofA Say About Bloom Energy?

In case you missed it, Bank of America bumped their price target on Bloom Energy to $24 today, as reported by The Fly (whoever they are, I’m just the messenger). This, naturally, should be cause for celebration. But hold on. Bloom is already selling for over $76 a pop. And you know what that means? That’s right: BofA is effectively saying, “Hey, we think this stock will fall a good 70% over the next year.” Oof. It’s like buying a Lamborghini for the price of a used bicycle and then realizing the wheels don’t turn.

And just in case you were wondering what you should do with that shiny Bloom stock you were clutching so lovingly, BofA’s advice is clear: Sell. Yes, you heard it-sell. When the experts start acting like your aunt at a yard sale, offering you a nickel for that rare item you were sure would appreciate in value, you know it’s time to rethink your portfolio.

Is Bloom Energy Stock a Sell?

Here’s the thing: Bloom Energy had a stellar run this year. We’re talking about a 650% surge over the last 12 months. Why? Because companies like American Electric Power and Oracle are using its fuel cells to power those shiny, ever-hungry AI data centers. That’s the good news.

But don’t pop the champagne just yet, folks. Despite these big contracts, Bloom hasn’t raised its earnings guidance for the year. Hmm, why would they do that? Could it be that these big, headline-grabbing deals aren’t actually turning a profit? Shocking, I know. With total earnings over the last 12 months hovering below $24 million, Bloom’s market cap sits at a jaw-dropping $20.2 billion. That means the stock is currently valued at a wild 852 times its earnings. Let that sink in, like a bad punchline at a comedy club.

So, let’s put on our fancy math hats for a second. If Bloom turns a profit next year (and that’s a *big* if), the stock will still likely be priced with a P/E ratio so high, you’ll need a telescope to see it. In fact, that P/E ratio will be in the triple digits. Yep, you read that right. Triple. Digits. Like, “I’ll have what she’s having,” but with a side of risk.

At this point, I’m on board with BofA. This stock’s probably a sell, unless you’ve got a deep fondness for watching roller coasters while holding your breath.

So, there you have it. Go ahead, make your move. But remember: you heard it here first. And trust me, I’m just the guy who shows up to a dinner party with a napkin full of predictions. 🍽️

2025-09-23 22:33

What Did BofA Say About Bloom Energy?

Is Bloom Energy Stock a Sell?

Read More