TLDR
- Bloom Energy stock fell 6% after Crusoe Energy paused construction of a 1.8 GW data center tied to Bloom’s fuel cell pipeline
- The paused project was co-developed with Blackstone-backed Tallgrass Energy for an undisclosed hyperscaler
- RBC Capital and BMO Capital both maintained Outperform ratings despite the news
- Bloom Energy stock has dropped roughly 16% over the past week, hitting a session low of $241.13
- Q1 revenue beat estimates by a wide margin, rising 130.4% year over year to $751 million
Bloom Energy (BE) stock fell 6% in morning trading on Tuesday after Crusoe Energy abruptly paused construction of a 1.8 GW data center that was connected to Bloom’s fuel cell deployment pipeline.
The project was co-developed with Blackstone-backed Tallgrass Energy for an undisclosed hyperscaler. AEP Energy had planned to deploy a substantial portion of Bloom’s solid oxide fuel cell supply under a conditional power purchase agreement tied to the project.
The pause directly threatens a chunk of Bloom’s near-term revenue backlog, and the market reacted quickly. The stock hit a session low of $241.13 and has now fallen roughly 16% over the past week.
Wall Street Holds Firm
Despite the selloff, two major Wall Street firms didn’t budge. RBC Capital reiterated an Outperform rating with a $335 price target. BMO Capital also kept its Outperform rating, though its analysts acknowledged the pipeline risk the Crusoe pause creates.
Separately, Black Hills Energy confirmed its own 1.8 GW Wyoming data center project is still on track, with in-service expected in early 2028. That’s a small but notable offset to the negative headline.
Analyst commentary does flag that BE looks overvalued at current levels, even after the pullback. The stock has a 52-week low of $20.93 and reached a high of $322.83, so even at $241 it’s carried a steep valuation premium.
The broader market didn’t help either. The S&P 500, Nasdaq, and Dow were all lower on the day as a tech selloff weighed on sentiment. Fresh CPI data showed U.S. annual inflation hit 4.2% in May, and markets are fully pricing in a 25 basis point rate hike by the Fed in December. That kind of higher-for-longer rate environment hits growth names like Bloom especially hard.
Strong Earnings, But Questions Remain
The company’s most recent quarterly results were genuinely strong. Bloom reported Q1 EPS of $0.44, well ahead of the $0.12 consensus estimate. Revenue came in at $751 million, crushing the $540 million forecast and up 130.4% year over year.
The company also raised its FY2026 guidance to $1.85–$2.25 EPS. Sell-side analysts are currently projecting $1.31 EPS for the full year.
Institutional interest has stayed firm. Hedge funds and institutional investors own 77.04% of the stock. Vestcor Inc raised its stake by 400% in Q4, while several other firms added smaller positions.
On the insider front, two executives sold stock in April. Shawn Marie Soderberg sold 35,000 shares at $279.00, and Satish Chitoori sold 20,000 shares at $204.23. Insiders have sold a combined $71.5 million worth of stock over the past quarter.
The consensus analyst rating sits at “Moderate Buy” with a price target of $217.48, below where the stock is currently trading.
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