Why Bloom Energy (BE) Shares Are Plunging Today

What Happened?

Shares of electricity generation and hydrogen production company Bloom Energy (NYSE:BE) fell 11.8% in the morning session after Jefferies downgraded the stock to 'Underperform' from 'Hold,' citing concerns about the company's high valuation and uncertain long-term growth. 

The investment firm warned that investor enthusiasm had run ahead of the company's fundamentals. Analysts at Jefferies noted there was limited visibility into Bloom's growth prospects beyond 2026 and saw "some early signs of over-exuberance" in the stock. While Jefferies raised its price target on the stock to $31, this was still substantially below the stock's trading price, suggesting a significant potential downside. This assessment implied that the risks of the stock falling outweighed the potential for further gains at its current levels.

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What Is The Market Telling Us

Bloom Energy’s shares are extremely volatile and have had 67 moves greater than 5% over the last year. But moves this big are rare even for Bloom Energy and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was about 24 hours ago when the stock dropped 8% on the news that BofA Securities maintained its "Underperform" rating on the stock, even while it raised its price target. 

The bank lifted its price view to $24.00 from $21.00. However, the maintained "Underperform" rating signaled that the analyst still saw a potential downside in the company's near-term market performance. This mixed message appeared to worry investors more than the higher price target encouraged them. 

The move came amid wider concerns about the company's fundamentals and reports of insider selling activity, which fueled a cautious outlook. While some analysts pointed to Bloom's potential in the AI data center power market, especially after a deal with Oracle, the negative view from a major bank seemed to weigh more heavily on the stock.

Bloom Energy is up 186% since the beginning of the year, but at $66.75 per share, it is still trading 22.6% below its 52-week high of $86.27 from September 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $4,568.

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