Bloom Energy (BE) Stock Drops 6% as Major Data Center Deal Hits the Brakes

Key Takeaways

• Shares of Bloom Energy declined 6% following news that Crusoe Energy suspended a 1.8 GW data center development linked to Bloom’s fuel cell supply chain
• The suspended development was jointly planned with Tallgrass Energy, backed by Blackstone, for an unnamed hyperscale client
• Analysts at RBC Capital and BMO Capital retained their Outperform ratings on the stock despite the setback
• The stock has declined approximately 16% in the last week, touching an intraday low of $241.13
• First-quarter revenue significantly exceeded forecasts, jumping 130.4% year-over-year to $751 million

Shares of Bloom Energy (BE) tumbled 6% during Tuesday’s morning session after news emerged that Crusoe Energy had suddenly halted construction on a 1.8 GW data center facility that was integral to Bloom’s fuel cell supply commitments.

Bloom Energy Corporation, BE

The development was being pursued jointly with Tallgrass Energy, which has backing from Blackstone, and was intended to serve an unnamed hyperscale technology company. AEP Energy had been preparing to install a significant amount of Bloom’s solid oxide fuel cell technology under a conditional power agreement connected to this facility.

The suspension puts a meaningful portion of Bloom’s projected revenue pipeline at risk, prompting an immediate market response. Shares touched an intraday bottom of $241.13 and have declined roughly 16% during the past five trading sessions.

Analyst Sentiment Remains Positive

Despite the sharp decline, leading investment banks maintained their bullish stance. RBC Capital reaffirmed its Outperform rating alongside a $335 price objective. BMO Capital similarly held its Outperform rating, while noting the pipeline uncertainty introduced by the Crusoe suspension.

In related developments, Black Hills Energy verified that its separate 1.8 GW data center facility in Wyoming remains on schedule, with an anticipated launch in early 2028. While this provides some counterbalance, it doesn’t fully offset the negative impact.

Analyst assessments suggest BE appears richly valued even following the recent downturn. With a 52-week trading range spanning from $20.93 to $322.83, the current price of $241 still reflects an elevated valuation multiple.

Broader market conditions added to the pressure. The S&P 500, Nasdaq, and Dow Jones Industrial Average all posted losses as technology stocks faced selling pressure. Recent CPI figures revealed U.S. annual inflation reached 4.2% in May, with markets now fully anticipating a 25 basis point Federal Reserve rate increase in December. This higher-rate backdrop particularly challenges high-growth companies like Bloom.

Impressive Financial Performance Amid Uncertainty

The company’s latest quarterly performance was undeniably robust. Bloom delivered Q1 earnings per share of $0.44, handily surpassing the $0.12 analyst consensus. Revenue reached $751 million, substantially exceeding the $540 million estimate and representing a 130.4% year-over-year increase.

Management also elevated its FY2026 earnings guidance to a range of $1.85–$2.25 per share. Current sell-side projections call for full-year earnings of $1.31 per share.

Institutional ownership remains substantial at 77.04% of outstanding shares. Vestcor Inc dramatically increased its position by 400% during the fourth quarter, while various other institutional investors added to their holdings.

Regarding insider activity, two company executives sold shares in April. Shawn Marie Soderberg disposed of 35,000 shares at $279.00 each, while Satish Chitoori sold 20,000 shares at $204.23. Corporate insiders have collectively sold approximately $71.5 million in stock during the previous three months.

The consensus Wall Street rating stands at “Moderate Buy” with an average price target of $217.48, which sits below the stock’s current trading level.

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