TLDR
- BE stock fell ~14% on Thursday, sliding from its record high of $346 hit on June 22.
- The drop came despite a $1.7B project investment to deploy Bloom fuel cells for Nebius’ AI cloud infrastructure.
- Clear Street kept its Hold rating and $290 price target, calling the pullback potentially opportunistic.
- A short-seller report from Hunterbrook flagged supply-chain risks around scandium sourcing from China.
- Wall Street’s consensus sits at Moderate Buy, with an average price target of $285.45.
Bloom Energy stock dropped roughly 14% on Thursday, with BE opening at $205.94 on Friday. That’s a sharp move from its June 22 record high of $351.28.
The sell-off came on the same day the company announced a $1.7 billion project investment from IDF and Oaktree to deploy its fuel cells for Nebius’ AI cloud infrastructure.
Clear Street reiterated a Hold rating and a $290 price target on BE, saying the pullback may be temporary rather than a sign of changing fundamentals.
“Pullback looks opportunistic,” the firm said, pointing to the gap between current prices and its target.
The firm pointed to three main reasons for the decline. First, AI-related stocks broadly have pulled back since mid-June as investors question whether valuations reflect realistic 2027 and 2028 spending levels.
Second, new regulatory pressure is adding uncertainty. New York became the first state to impose a one-year pause on new data centers above 50 MW, raising concerns about large power projects.
Third, a short-seller report from Hunterbrook raised red flags over Bloom’s access to scandium, a rare earth metal used in its fuel cells. Most of the world’s scandium supply comes from China, which is reportedly tightening export licensing.
Scandium Risk in Focus
Clear Street noted that concerns from Bloom’s former CFO were mainly focused on late 2027 and 2028, as the company works to build out a multi-country supply chain. The short report also questioned Bloom’s financing joint venture with Brookfield and flagged possible delays at projects in Wyoming and New Mexico.
Despite all this, the firm held its neutral stance, suggesting long-term fundamentals remain intact.
Institutional Activity and Analyst Targets
Diversify Wealth Management opened a new position in Q1, buying 6,579 shares valued at around $891,000. Several other institutional investors also increased their holdings during the quarter, with institutions collectively owning 77.04% of BE stock.
On the insider side, Director John T. Chambers sold 55,000 shares in late May at an average of $297.69, totaling over $16.3 million. Insider Aman Joshi sold 8,343 shares on July 1 at $300.37.
Bloom’s most recent quarterly earnings topped estimates by a wide margin. The company posted $0.44 EPS against a $0.12 consensus estimate, with revenue of $751.05 million versus the $539.94 million expected — up 130.4% year over year.
Susquehanna raised its price target to $298 with a “positive” rating on July 10. Robert W. Baird reaffirmed an “outperform” rating with a $310 target on July 9. The consensus average price target currently stands at $250.41, implying 38.08% upside from Friday’s open.
BE’s 52-week low sits at $24.04, with a high of $351.28.
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