Bloom Energy Stock

last updated on

Bloom Energy Stock

Bloom Energy Stock: Can It Make You Rich?

Bloom Energy stock price is up by 250% this year. This means those who invested in the stock at the start of the year are now looking at solid gains.

But this rise has also made many investors cautious about the Bloom Energy stock. So, is Bloom Energy headed for a correction, or does it still have the potential to make you rich?

Bloom Energy's Forward P/E is 140

Bloom Energy is unique in a sense that it gives exposure to AI and renewable energy. It is basically an energy company that makes fuel cell energy solutions. These solutions are used by hyperscalers to power data centers.

One risk about Bloom Energy stock is that it is trading at a forward P/E of 140. Also, most of the backlog is now already priced in. Despite these risks, analysts think it is still a good idea to buy Bloom Energy stock.

For starters, the solid oxide fuel cells made by the company are a game-changer. They can be deployed quickly and allow data centers to get electricity without a lot of waiting.

Also, big names like Oracle, Alphabet, and Microsoft are spending big money on AI data centers. However, the electric grid is a major bottleneck for these data centers. Expanding a traditional grid can easily take years.

Meanwhile, the solid oxide fuel cells made by Bloom can generate electricty on the site. These cells can get operational within 90 days max.

By the end of 2025, the total backlog of Bloom Energy was sitting at $20 billion. So, things are looking really good for Bloom Energy.

However, one downside is that Bloom Energy is not profitable yet. But that could also change, as the recent earnings report shows a 130.4% y/y increase.

So, if you are willing to ignore the valuation risk, then Bloom Energy stock is a very good option. It is a leading force in the renewable energy sector and has the potential to make you rich.

Trending Stories