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Why Bloom Energy Stock Crashed Today
Bloom EnergyBloom Energy(US:BE) The Motley Foolยท2025-09-23 19:20

Core Viewpoint - Bloom Energy's stock price target was raised by Bank of America, but the new target suggests a significant decline in stock value, indicating a bearish outlook for the company [3][4]. Group 1: Price Target and Stock Performance - Bank of America raised its price target on Bloom Energy stock to $24, while the current stock price is over $76, implying a potential 70% drop in value [3]. - Bloom Energy's stock has increased by 650% over the past year, driven by contracts with companies like American Electric Power and Oracle for fuel cells used in AI data centers [5]. Group 2: Financial Performance and Valuation - Despite securing new contracts, Bloom Energy has not raised its earnings guidance for the year, indicating potential profitability issues with these contracts [6]. - The company's total earnings over the last 12 months are less than $24 million, resulting in a market capitalization of $20.2 billion, which translates to an extraordinary P/E ratio of 852 [6]. - The valuation is considered very high for a company expected to incur losses this year, and even if it becomes profitable next year, the forward P/E ratio is projected to remain in the triple digits [7].