Bloom Energy Shares Pull Back Following Spectacular Rally

Bloom Energy US0937121079

After an extraordinary surge that saw its value multiply by more than 300% since the start of 2025, Bloom Energy's stock momentum has begun to fade. The equity closed Friday's session at $90.18, marking a decline of 1.85%. This recent hesitation among investors prompts an examination of the shifting sentiment around the fuel cell manufacturer.

Fundamentally, the company's recent business results have been robust. For the third quarter of 2025, Bloom Energy reported revenue of $519 million, a figure that exceeded market expectations by $92.6 million. Its adjusted earnings per share came in at $0.15, beating forecasts by $0.05.

Management is pushing an aggressive expansion strategy, aiming to double production capacity to two gigawatts by December 2026. This growth is largely fueled by a recently secured $5 billion partnership with Brookfield Asset Management, which targets equipping large-scale data centers with Bloom's fuel cell technology. To finance these ambitious plans, the company has also issued bonds worth $2.2 billion.

Concerns Over a Key Customer Weigh on Sentiment

The current market unease appears to center on a major client: Oracle. The technology giant, which utilizes Bloom's fuel cells for its data centers, recently reported a negative free cash flow of approximately $13 billion over the past four quarters. This has been compounded by reports of delayed infrastructure projects, including data centers originally planned for OpenAI.

These developments have sparked a broader debate about the sustainability of the AI infrastructure boom. Fears of a potential "AI-Capex bubble" are circulating, leading investors to question whether the explosive demand for data center power solutions will materialize as quickly as the valuations of recent months had implied. This skepticism was evident in the week ending December 12, when the stock shed nearly 20% of its value, signaling a clear cooldown after months of gains.

Analyst Opinions Remain Divided

Market experts continue to hold mixed views on the stock's valuation. The average price target among 19 analysts sits at $83.16, roughly 8% below the current trading price. While 43% of analysts maintain a "buy" recommendation, close to 40% advise holding the shares. This caution is understandable; following a year-to-date advance exceeding 300%, a period of consolidation seems overdue to many observers.

The coming weeks will likely prove decisive. Concrete progress on planned AI data center investments by partner companies will be necessary to restore the confidence required for a renewed push toward the 52-week high of $147.86.