After a brutal July, during which a short-seller report combined with artificial intelligence (AI)-related market volatility to sink Bloom shares over 30%, the fuel-cell provider has climbed out of the gutter to rebound sharply in August. Shares had dropped to about $163 in late July; as of this writing, Bloom shares are trading at about $244 a pop, returning its year-to-date gain to triple digits. This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The good news: I think the best days are still ahead for Bloom investors.
Here's why the energy stock is a buy. Bloom sells solid oxide fuel-cell systems. In a nutshell, these systems let customers generate electricity at their own site instead of waiting years to connect to the grid.
Bloom can deploy these systems in 90 days or less -- it famously deployed a fully operational system to Oracle in just 55 days -- which aligns much better with the timelines of data center constructions than grid connections do. Bloom calls this "time-to-power," and it's one of the reasons it managed to triple its product revenue last quarter. It can take years for a new facility, like a factory or data center, to connect to a local grid, and that backlog is growing longer.
Data center operators, who are spending billions on new constructions, can't afford to let their computing warehouses stand idle for years. Bloom compresses time-to-power, which can be worth more than the cost of the fuel system itself. As such, Bloom's sales are exploding right now.
It's second-quarter revenue crossed the billion-dollar market for the first time, and the company is now expecting total 2026 revenue to be in the range of $3.9 billion to $4.2 billion, or roughly double revenue from the year before. Analysts are expecting Bloom's revenue to more than double over the next two years, and that might be a conservative estimate. Bloom's sales growth is a boon as much as a risk.
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