Key Takeaways
- Shares of Bloom Energy declined 6% following Crusoe Energy’s decision to halt a 1.8 GW data center development linked to Bloom’s fuel cell contracts
- Crusoe partnered with Blackstone-backed Tallgrass Energy on the project, which was intended for a major hyperscaler client
- Analysts at RBC Capital and BMO Capital kept their Outperform ratings unchanged following the announcement
- The stock has declined approximately 16% in the past week, reaching an intraday low of $241.13
- First quarter revenue exceeded Wall Street expectations significantly, climbing 130.4% from the prior year to $751 million
Shares of Bloom Energy (BE) dropped 6% during Tuesday’s morning session after Crusoe Energy unexpectedly halted development of a 1.8 GW data center facility that was linked to Bloom’s fuel cell equipment supply contracts.
Crusoe had been working alongside Blackstone-backed Tallgrass Energy to build the facility for an unnamed hyperscale customer. AEP Energy was scheduled to install a significant amount of Bloom’s solid oxide fuel cell technology as part of a conditional power purchase arrangement connected to the development.
The suspension puts a meaningful portion of Bloom’s anticipated revenue stream at risk, prompting investors to sell. The shares touched an intraday low of $241.13 and have shed approximately 16% over the last five trading sessions.
Analyst Sentiment Remains Positive
The negative news didn’t shake confidence among key Wall Street analysts. RBC Capital maintained its Outperform rating while keeping its $335 price target intact. BMO Capital similarly held onto its Outperform stance, although its research team noted the pipeline uncertainty introduced by the Crusoe development halt.
In related news, Black Hills Energy announced its separate 1.8 GW data center facility in Wyoming remains on schedule, with completion targeted for early 2028. While modest, this development provides some counterbalance to the bearish headline.
Some analyst commentary suggests BE appears richly valued even following the recent decline. The shares have traded between a 52-week low of $20.93 and a high of $322.83, placing the current $241 level still well above historical lows.
Broader market conditions added pressure. The S&P 500, Nasdaq, and Dow 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 prolonged higher rate environment tends to weigh particularly heavily on growth-oriented companies like Bloom.
Impressive Quarter Despite Pipeline Concerns
The company’s latest quarterly performance was notably robust. Bloom delivered Q1 earnings per share of $0.44, significantly surpassing the Wall Street consensus of $0.12. Revenue totaled $751 million, far exceeding analyst expectations of $540 million and representing a 130.4% year-over-year increase.
Management also upgraded its FY2026 earnings guidance to a range of $1.85–$2.25 per share. Current analyst estimates call for full-year earnings of $1.31 per share.
Institutional ownership remains substantial at 77.04% of outstanding shares. Vestcor Inc increased its position by 400% during the fourth quarter, while multiple other institutional investors established new stakes.
Regarding insider activity, two company executives divested shares in April. Shawn Marie Soderberg sold 35,000 shares at $279.00 each, while Satish Chitoori offloaded 20,000 shares at $204.23 apiece. Combined insider sales totaled $71.5 million over the past three months.
The Wall Street consensus rating stands at “Moderate Buy” with an average price target of $217.48, which sits below current trading levels.
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