Bloom Energy (BE) Stock Stocks Gain 18% – Here’s What Triggered the Sell-Off

TLDR

• BE stock has fallen sharply from a 52-week high, retreating after a 1,300%+ rise over the past 12 months.
• Chevron and Microsoft’s deal to use natural gas turbines for a data center in Texas has raised questions about competition in fuel cells
• The Department of Energy announced $17.5 billion in funding for nuclear energy, adding another competing energy source to the mix.
• Short seller Jim Chanos called the AI ​​energy space a bubble. Barclays set a price target of $276 — at then-current trading levels
• Insiders have sold over $83m net of BE shares over the last 12 months, adding to investors’ caution.

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Bloom Energy (BE) stock fell as much as 18.49% on Friday, hitting $252.02 during the day after hitting a 52-week high in the previous session. The stock price was trading at $309 before the decline began.

Bloom Energy Company, BE

This decline comes after the BE index rose by more than 1,300% over the past twelve months. This type of run leaves the stock exposed when sentiment turns.

Profit taking started in selling. When a stock moves this quickly, it doesn’t take much to turn the mood around.

But some specific catalysts exacerbated the decline. chevron f Microsoft Announced a deal to power an AI data center in Texas using natural gas turbines, not fuel cells. This is a direct indication that BE technology has real competition in the field of AI infrastructure.

The US Department of Energy also announced $17.5 billion in funding for nuclear energy this week. This puts another power source into the conversation as technology companies look to meet demand for their data centers.

Short seller stacks

Jim Chanos, a well-known short seller, has publicly stated that the AI ​​energy field is in bubble territory. His comments gained traction given that BE was already trading well above most analysts’ price targets.

Barclays raised its price target on BE to $276 on June 23, with an equal weight rating. This has almost put a cap on where the stock is trading, making it difficult to argue a bullish case.

The broader market didn’t offer much coverage either. The S&P 500 and Nasdaq were both roughly flat on the day, meaning this was a move entirely for BE.

Their fuel cell peers were not spared. Fuel cell energy Plug Power has also seen selling pressure in recent sessions, suggesting a broader rotation to high-momentum AI power names.

Inside sales and corporate moves

Insider selling has been an ongoing theme. Company insiders sold more than $83m net of BE shares over the last 12 months. Director John T. Chambers sold 55,000 shares on May 28 at $297.69 per share, a transaction worth more than $16.3 million. Insider Sean Marie Soderbergh sold 35,000 shares at $279.00 on April 29th.

Even though some insiders cashed out, institutional ownership is still high at 77.04%.

On the fundamental side, BE’s recent quarterly earnings were strong. The company reported EPS of $0.44 versus a consensus estimate of $0.12. Revenue was $751.05 million, well above the expected $539.94 million – up 130.4% year over year.

Wesbanco Bank reduced its BE position by 43.9% in the first quarter, leaving it with 29,932 shares worth about $4.05 million.

The average analyst rating for the stock is Moderate Buy, with an average price target of $224.36. UBS has the highest target at $322.00.

BE’s next earnings report is expected in late July.