What stands out to me is improving financial discipline. After years of losses, BE is nearing net-income breakeven, with positive operating cash flow and early FCF generation. The asset-light shift via Brookfield lowers capital intensity and improves cash-flow visibility, reducing execution risk.
That said, I remain cautious at current prices. Valuation already reflects high expectations, while profitability is still fragile. For me, Bloom Energy is a solid long-term thematic name, but I would rather wait for a pullback than chase it here.
Hydrogen Energy Star | Is BE Overvalued After a 7.41% 5-Day Surge?
@TigerPicks：
In the past five days, $Bloom Energy Corp(BE)$ 's share price has risen by 7.41%. The $S&P 500(.SPX)$ closed slightly higher on Friday, the first trading day of 2026, as gains in semiconductor names kept the index afloat. The benchmark closed up 0.19% at 6,858.47, while the $NASDAQ(.IXIC)$ fell 0.03% to finish at 23,235.63, $Dow Jones(.DJI)$ moved up 319.10 points, or 0.66%, to settle at 48,382.39. The best-performing concepts is Hydrogen Energy Concept. Considering the different perceptions of the stock, this time TigerPicks chose $Bloom Energy Corp(BE)$ to have a fundamental highlight to help users understand it better. In the past five days, $Bloom Energy Corp(BE)$ 's share price has risen by 7.41%. $Bloom Energy Corp(BE)$ Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. BE's Financing Discipline BE has been unprofitable for years due to high costs, turning operating-income positive only in FY24 while net income remained negative. It is now near net-income breakeven, with slightly positive TTM profitability. Q3’25 showed strong improvement: revenue up 57.1% YoY, margins expanding, cost of revenue down to ~70% (from 76%), and operating expenses reduced to 27.7% of revenue. BE also generated positive operating cash flow for the first time since FY15, with a 1% FCF margin. While leverage remains high ($1.5B debt vs. $595M cash), positive FCF improves liquidity. Crucially, the $5B partnership with Brookfield (BAM) shifts BE toward an asset-light model: BAM finances fuel-cell projects for AI data centers, while BE earns recurring PPA revenues. This reduces CapEx needs, improves cash-flow visibility, and should strengthen leverage metrics. Overall, BE is showing better financial discipline, improving cash flows, and strong AI-driven demand, with the BAM partnership acting as a key structural catalyst. Brookfield Deal Based On Bloom's Tech Moat Bloom Energy expects strong revenue growth into FY26, driven by doubling capacity to 2GW by December 2026—enough to support ~4× FY25 revenue. Demand is anchored in BE’s solid oxide fuel cell (SOFC) technology, which delivers reliable 24×7 power using multiple fuels (natural gas, hydrogen blends, biogas, hydrogen) without combustion. BE’s key moat is on-site, off-grid, modular power. Fuel cells can be installed directly at data centers, avoiding grid constraints, transmission costs, and long lead times. This makes them highly attractive for hyperscalers and AI data centers that need immediate, scalable power. BE has also demonstrated fast execution, delivering an Oracle AI project in 55 days versus a 90-day commitment. Fuel flexibility is another major advantage. Unlike Plug Power, which is heavily dependent on hydrogen pricing, BE can switch fuels to manage costs and protect margins. With hydrogen supply growth slowing due to project cancellations, this flexibility becomes increasingly valuable. Bottom Line Bloom Energy has a clear technology moat and is well positioned to benefit from rising data center and AI power demand—an opportunity even Nvidia’s CEO has highlighted, noting that self-generated power can scale faster than grid-based solutions. That said, investors must balance company quality with valuation. BE trades at a very rich PE of ~127 versus the sector average of ~21, signaling clear overvaluation. While revenue growth expectations are strong and the forward P/S ratio looks reasonable, most valuation metrics suggest the stock is priced ahead of fundamentals. Operating income has only recently turned slightly positive, indicating profitability is still not firmly established. Bloom’s recent momentum is heavily tied to data center and AI infrastructure demand. Any slowdown or project delays could materially affect growth and margins. In addition, regulatory support—particularly the 30% Investment Tax Credit—has been a key tailwind. Although the ITC has been extended through 2033 with a gradual phase-out, any adverse policy changes would negatively impact demand. Overall, BE is best rated as HOLD. The company has strong long-term potential driven by its tech moat, improving financial discipline, and AI-related momentum. However, given valuation risk and macro/regulatory uncertainties, long-term investors may achieve better risk-adjusted returns by waiting for a price correction before initiating a position. Stock Price Forecast: Here are the target price forecasts for the next 12 months from analysts. Based on 18 Wall Street analysts offering 12 month price targets for Bloom Energy in the last 3 months. The average price target is $121.00 with a high forecast of $160.00 and a low forecast of $39.00. The average price target represents a 22.61% change from the last price of $98.69. Resource: https://seekingalpha.com/article/4856834-bloom-energy-why-im-waiting-for-a-price-correction For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs. 🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now Find out more here. Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP. Click to access the activity Other helpful links: 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉 How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
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