Core Viewpoint - Bloom Energy's stock has experienced a significant decline after a substantial increase over the past three months, with a recent downgrade from Jefferies contributing to the drop [1][5]. Group 1: Stock Performance - Bloom Energy's stock price has more than tripled in the last three months, but it fell by 17% in early trading and was down 12.4% as of 10:50 a.m. ET [1]. - Jefferies downgraded Bloom Energy's stock from hold to sell, while raising the price target from $24 to $31 per share, indicating optimism about the business but concern over the stock's rapid rise [5][6]. Group 2: Business Developments - The surge in Bloom Energy's stock was fueled by speculation regarding the company's potential growth alongside the expansion of data centers for AI applications, particularly following a collaboration announcement with Oracle [3][4]. - The deal with Oracle to power AI data centers is expected to commence in the coming months, suggesting a tangible business opportunity rather than a distant speculative bet [4]. Group 3: Market Dynamics - Approximately 20% of Bloom Energy's shares are sold short, which likely contributed to the stock's sharp rise as short-sellers covered their positions during the stock's surge [6]. - Long-term investors are advised to monitor Bloom's underlying business, as there may be significant revenue growth from the data center business, which could positively impact the stock in the long run [7].
Why Bloom Energy Stock Sank Again Today