Why Shares of BE Got Crushed Last Week

Core Viewpoint - Bloom Energy's stock has experienced significant volatility, with a recent drop of over 12% despite a year-to-date increase of more than 300% [1][2]. Stock Performance - The stock rose 365% since the start of 2025, but insiders sold over $19 million in shares in November 2025, which may have impacted investor confidence [2]. - The stock is currently trading well below its 52-week high of $147 [2]. - The market capitalization of Bloom Energy is approximately $22 billion, with a current stock price around $94.65 [7]. Valuation Concerns - There are ongoing concerns regarding inflated valuations, as Bloom Energy's price-to-earnings ratio exceeds 1,300, despite consistently beating quarterly earnings expectations [4]. Market Sentiment - The stock's performance is closely tied to sentiment surrounding artificial intelligence, with broader market concerns about a potential AI bubble affecting Bloom Energy's stock [5]. - Investor enthusiasm has driven the stock's triple-digit gains over the past year, suggesting a need for a recalibration of expectations [6]. Financial Performance - Bloom Energy reported a revenue of $519 million in the third quarter, marking a 57% increase year-over-year and the fourth consecutive quarter of record revenue [8]. - The company is also seeing improvements in gross profit and margins, indicating a positive outlook for its future [8].