Stock Market Today, Oct. 23: Bloom Energy Falls on Cash Flow Concerns Despite Record Q3 Revenue
Bloom Energy (NYSE:BE), a solid-oxide fuel cell systems provider, closed at $193.30, down 11.24%. Investors are locking in profits as the company reports negative operating cash flow and faces heavier expansion spending after an earnings beat-and-raise.Trading volume reached 34.7
On October 23, Bloom Energy's stock fell 11.24% to $193.30, despite reporting record third-quarter revenue. The company's negative operating cash flow and increased expansion spending prompted investors to capitalize on profits, leading to a trading volume of 34.7 million shares, 117% higher than its three-month average. Since its 2018 IPO, Bloom Energy has grown 672% since going public.
The S&P 500 and Nasdaq Composite closed at 7,623 and 25,955, respectively, both down slightly. Competitors Plug Power and FuelCell Energy closed unchanged and down 4.06%, respectively. Bloom Energy's solid-oxide fuel cell systems cater to data center power requirements, which is why revenue surged 138% year-over-year in Q3. Investors had expected this growth, but some have chosen to sell shares after the stock soared over 122% this year, despite the current decline.
The company raised its full-year revenue guidance, but cash generation and capital expenditure concerns dominated investor sentiment. Although demand remains robust and Bloom is increasing production capacity, its stock is 44% below its recent high, presenting a more reasonable valuation for those who anticipate substantial data center expansion in the future.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
