Why Bloom Energy Stock Slumped 26.6% in October, and Why the Pullback is a Buying Opportunity
Hyperscalers and data center operators are rushing for Bloom Energy's fuel cells.
In October, Bloom Energy's stock price plummeted 26.6%, despite the company achieving its best quarter ever. The energy company's fuel cells, which generate power on-site for clients like AI data centers, hold a promising technology. However, project delays, cash burn, and broader market concerns weighed on the stock. A key setback was Project Jupiter, an Oracle-funded AI campus in New Mexico that required a 17-mile pipeline from Energy Transfer.
Delays in obtaining rights-of-way for the pipeline pushed the project's completion date from August 2026 to February 2027, prompting Oracle to consider alternative gas delivery methods. This delay, coupled with the company's heavy investments in capacity expansion, led to negative free cash flow of $181 million in the quarter. Despite reporting a record $1.2 billion in third-quarter revenue, a 138% year-over-year increase, and raising full-year revenue targets to $4.5 billion, investors grew increasingly cautious.
The broader sell-off in AI-power and data-center stocks, along with political shifts and midterm election cycles, further contributed to the stock's decline. For long-term investors, however, the company's business appears robust, with NTT DATA committing to deploy 900 megawatts of Bloom Energy's fuel cells across data centers globally, marking the company's largest international project.
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