Bloom Energy (BE) Stock Tanks 18% — Here’s What Triggered the Selloff

TLDR

• BE stock fell sharply from a 52-week high, pulling back after a 1,300%+ surge over the past twelve months
• A Chevron-Microsoft deal to use natural gas turbines for a Texas data center raised questions about fuel cell competition
• The DOE announced $17.5 billion in nuclear energy financing, adding another rival power source to the mix
• Short-seller Jim Chanos called the AI energy space a bubble; Barclays set a price target of $276 — right at then-current trading levels
• Insiders have sold over $83 million net in BE stock over the past twelve months, adding caution for investors

Bloom Energy (BE) stock dropped as much as 18.49% on Friday, hitting $252.02 intraday after touching a 52-week high the session before. The stock had been trading around $309 before the slide began.

Bloom Energy Corporation, BE

The pullback comes after BE climbed more than 1,300% over the past twelve months. That kind of run leaves a stock exposed when sentiment turns.

Profit-taking kicked off the selling. When a stock moves that fast, it doesn’t take much to flip the mood.

But a few specific catalysts sharpened the drop. Chevron and Microsoft announced a deal to power a Texas AI data center using natural gas turbines — not fuel cells. That’s a direct signal that BE’s technology has real competition in the AI infrastructure space.

The U.S. Department of Energy also announced $17.5 billion in nuclear energy financing this week. That puts another power source into the conversation as tech companies look to feed their data center demand.

Short-Seller Piles On

Jim Chanos, a well-known short-seller, publicly stated that the AI energy space is in bubble territory. His comments gained traction given that BE was already trading well above most analyst price targets.

Barclays raised its price target on BE to $276 on June 23rd, with an Equal Weight rating. That placed a ceiling almost exactly at where the stock was trading, making the bullish case harder to argue.

The broader market didn’t offer much cover either. The S&P 500 and Nasdaq were both near flat on the day, meaning this was entirely a BE-specific move.

Fuel cell peers weren’t spared. FuelCell Energy and Plug Power also saw selling pressure in recent sessions, pointing to a broader rotation out of high-momentum AI energy names.

Insider Sales and Institutional Moves

Insider selling has been a running theme. Company insiders sold more than $83 million net in BE stock over the past twelve months. Director John T. Chambers sold 55,000 shares on May 28th at $297.69 per share, a transaction worth over $16.3 million. Insider Shawn Marie Soderberg sold 35,000 shares at $279.00 on April 29th.

Despite some insiders cashing out, institutional ownership remains high at 77.04%.

On the fundamental side, BE’s most recent quarterly earnings were strong. The company reported EPS of $0.44 versus a $0.12 consensus estimate. Revenue came in at $751.05 million, well ahead of the $539.94 million expected — up 130.4% year-over-year.

Wesbanco Bank reduced its BE position by 43.9% in Q1, leaving it with 29,932 shares valued at around $4.05 million.

The stock’s average analyst rating is Moderate Buy, with an average price target of $224.36. UBS has the highest target at $322.00.

BE’s next earnings report is expected in late July.

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