Bloom Energy’s Record Revenue and $1.7B Deal Fail to Reverse the Slide

Stock plunges 40% from record high despite $1.7B Oaktree financing for AI data centers, hit by scandium dependency allegations and bearish bets.

Bloom Energy is living through a paradox. A $1.7 billion financing package from Oaktree Capital and IDF — tied directly to the company’s fast-growing business with AI data centers — should have been a catalyst. Instead, the stock opened near $228 on the day of the announcement and closed at $206.73, carving through several technical support levels in the process. The sell-off has been relentless: the shares have shed 14.31% in a single week and nearly 25.9% over the past month, leaving them 40.42% below the June 25 record high of €308.50.

The latest turbulence traces back to a short-seller report from Hunterbrook Media published on July 8, which accused Bloom Energy of downplaying its dependence on Chinese scandium, a critical material for its solid-oxide fuel cells. The report also questioned whether the company can realistically hit its target of 5 gigawatts of annual production, noting that such output would require roughly 220 tonnes of scandium oxide — close to the estimated global annual supply. Bloom Energy fired back, calling the allegations “false and misleading” and pointing to its audited financial statements filed with the SEC. The attacks did not stop there: last week, Crossroads Capital disclosed a new short position, betting on a further downward revaluation.

At the same time, the company’s fundamental metrics tell a sharply different story. First-quarter revenue surged 130.4% year over year to a record $751.1 million, while adjusted earnings per share came in at $0.44 and adjusted operating income reached $129.7 million. Management raised its full-year 2026 revenue guidance to a range of $3.4 billion to $3.8 billion. The financing from Oaktree and IDF underscores institutional confidence in Bloom’s technology, and the expanded master agreement with Brookfield — worth $25 billion — has improved the company’s financing flexibility, even if it does not yet translate into a firm order book.

Still, Wall Street is deeply divided. BMO Capital’s Ameet Thakkar retains a Hold rating and a $279 price target, acknowledging the improved funding picture but cautioning that Bloom’s solid-oxide platform remains early in its commercial lifecycle, particularly for large-scale baseload applications behind the meter. Clear Street also rates the stock Hold, while UBS raised its target to $350 with a Buy recommendation. RBC Capital reiterated its Buy call on July 14. Of the 19 analysts covering the stock, nine recommend Buy and ten Hold — a split that reflects the tension between AI-driven optimism and valuation caution.

Chart watchers are eyeing $205 as the first level where a stabilization might take hold. The 14-day relative strength index sits at 37.1, a technically oversold reading that suggests much of the selling pressure has already been absorbed. Yet the stock is currently trading about 24% below its 50-day moving average of €241.76, underscoring how far sentiment has shifted.

All eyes are now on July 28, when Bloom Energy reports second-quarter results after the market close, followed by a conference call at 2 p.m. Pacific Time. The numbers will need to show whether the record product shipments and customer prepayments seen in Q1 can generate sustainable cash flow alongside the reported profits. For a company caught between a short-seller offensive and a booming AI tailwind, the earnings call may well determine whether the current correction becomes a buying opportunity or the start of a deeper repricing.