Bloom Energy (BE 1.08%) has been one darling of the artificial intelligence (AI) data center build-out. Its fuel cell solution is gaining popularity thanks to its viability as an on-site power supply and its timely installation.
Bloom reported first-quarter results this week and gave investors more evidence that business remains strong and growing. That led to another jump in Bloom shares, which rose about 23.5% as of Friday morning, according to data provided by S&P Global Market Intelligence. The stock hit a new all-time high on the report.
Image source: The Motley Fool.
What’s next after a new all-time high
There’s no denying that Bloom’s business is booming. Data center applications have been a game changer for the company and the stock. Bloom CEO KR Sridhar stated, “We at Bloom are ushering in the era of digital power for the digital age. Bloom is rapidly becoming the standard and ‘go-to choice’ for on-site power.”
But the stock and the underlying business aren’t the same thing. Bloom is now trading more like a momentum or meme stock. That kind of trend is typically not sustainable. Some of the parabolic move in Bloom shares may also be coming from a short squeeze. As of mid-April, about 9% of Bloom Energy’s float was sold short, according to MarketWatch.
Today’s Change
(-1.08%) $-3.06
Current Price
$280.30
Key Data Points
Market Cap
$81B
Day’s Range
$273.21 – $291.22
52wk Range
$16.05 – $296.50
Volume
2.4M
Avg Vol
11M
Gross Margin
31.08%
Bloom stock is now trading at a valuation that would take years to grow into. Management increased 2026 guidance and predicts earnings of as much as $2.25 per share. Yet even if the company doubles those results in 2027, it would be trading at a forward price-to-earnings (P/E) ratio of over 60.
Bloom shares might hold their current valuation on soaring demand, but it seems unlikely that they are a good buy at this level.
Howard Smith has positions in Bloom Energy and has the following options: short May 2026 $60 calls on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.