The Case For Bloom Energy Corporation (BE)

Note 1: I am an amateur investor and nothing you might stumble across here represents, in any way whatsoever, a stock recommendation. It merely represents a historical record.

Note 2). There is no note two.

Bloom Energy

Data Points:
Current Price: $16.44
52 Week Range: 9.02 - 29.83
44% Below Its High.
Last 30 Day Momentum: Minus 20.85%
Market Cap: 3.8B
EV/Sales FWD: 2.63

Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally.

It offers Bloom Energy Server, a power generation platform to convert fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels, into electricity through an electrochemical process without combustion.

Website: https://www.bloomenergy.com/

Latest Earnings Report:

https://seekingalpha.com/article/4780184-bloom-energy-corporation-be-q1-2025-earnings-call-transcript#source=section%3Aearnings_summary|section_asset%3Aearnings_history|first_level_url%3Asymbol|button%3Atranscript

Quarterly Highlights:

  • EPS Beat by 9 Cents
  • Revenue Beat by $36.67M
  • Revenue Increased YOY By 38.56%
  • CEO Confirmed 2025 Guidance
  • Margins expanded by 1000 Basis Points

Note 1: The ER has not been well received by the Market as the stock price is down about 10% since the company reported.

Hmmmm…so what’s the big deal about BE and why now? The answer here is pretty simple: AI and Data Centers which require voracious levels of reliable energy.

Example 1). Elon Musk recently decided to build a Super Computer in the Memphis, Tennessee area. The project requires immense levels of energy; which, has created a potential set back for the project:

AI/Data Centers need power. Lots of power. And the lots of power AI/Data Centers need has to be stable and consistently available. Moreover - AI Data Center energy needs only go up as time goes by which only exacerbates the current huge gigawatt gap we see today. So…to get to the heart of the issue: AI Data Centers not only need power - they need on-site power. Cue BE:

Here they come to save the day - mighty Bloom energy is on the way:

Quote from the Conf Call:

"… no longer do we see our customers, whether it is data centers or large factories, asking if on-site power is needed. That debate is over. The grid can only do so much in the short term, and without on-site power, people are not going to have power. That is no longer a question to us.”

Despite the market reaction to the Bloom Earnings Report - make no mistake: It was excellent. More to the point, the company exuded confidence throughout the CC with confidence that they will meet previous revenue projections and that demand for their on-site power solutions will only go stronger as AI Data Center power demands grows and grows.

Now…I don’t know jack about any of the technicals around all this…clueless really; however, while revenue has been really lumpy over the history of BE there is no doubt that local, on-site energy demands are becoming mission critical for a number of industries…energy that the local power grids struggle to meet and maintain. Which is exactly why BE has earned a position on the Growth Portfolio Scout Team.

All The Best.
Big Dumb Hick Investing.

11 Likes

Thanks for this, looks interesting…doc