TLDR
- After Oracle and OpenAI abandoned the plans for an AI data center expansion in Texas, Bloom Energy (BE) saw a 15.5% decline.
- The news severely affected investor sentiment, and the sell – off took place during the afternoon trading session.
- BE had increased by 11.83% in the previous month before the drop.
- The company has a steep Forward P/E of 119.41, compared to an industry average of 18.47.
- Currently, analysts rate BE as a Hold, and Q1 earnings are expected to show a 200% year – over – year EPS growth.
On March 6, 2026, Bloom Energy’s stock suffered a significant blow, dropping 15.5% after Bloomberg reported that Oracle and OpenAI had decided not to proceed with their planned AI data center expansion in Texas. This news worried investors who had been relying on data center demand as a key growth factor for the fuel cell company.
The decline followed a strong performance. BE had risen by 11.83% in the previous month, far outperforming the 7.17% gain of the Oils – Energy sector and the 0.15% slight decline of the S&P 500.
The sell – off was concentrated in the afternoon session, indicating that the Bloomberg report was released during market hours and triggered a rapid reaction from investors.
Before the news broke, Bloom Energy had been experiencing a wave of optimism due to the surging demand for AI infrastructure. Data centers consume a large amount of power, and fuel cell systems like those produced by BE were considered a potential fit for that market.
OpenAI’s decision to halt the Texas project removed a crucial element from that scenario, at least in the short term.
Earnings Picture Remains Strong
Despite the movement of the stock, the upcoming earnings still seem solid on paper. The company is expected to report Q1 earnings of $0.09 per share, which would represent a 200% year – over – year growth.
The consensus revenue for the quarter is $498.11 million, a 52.79% increase from the same period last year. For the full fiscal year, analysts expect earnings of $1.38 per share on revenue of $3.25 billion.
The Zacks Consensus EPS estimate has increased by 106.32% in the past month, which is a significant upward revision. Bloom Energy currently has a Zacks Rank of #3, or Hold.
Valuation Remains a Concern
Even after the drop, Bloom Energy’s valuation is still stretched. The stock trades at a Forward P/E of 119.41, compared to an industry average of 18.47. Its PEG ratio is 4.78, while the Alternative Energy sector average is 1.97.
The P/S ratio of 17.12 is close to its 10 – year high. GF Value values the stock at $23.95, indicating that it is significantly overvalued at current levels.
Institutional ownership is high at 84.63%, while insiders have been selling — 268,788 shares were sold in the past three months.
On the balance sheet, the company has a current ratio of 5.98 and a quick ratio of 4.95, indicating strong liquidity. The debt – to – equity ratio of 3.89 is high, but the Altman Z – Score of 6.88 suggests that the underlying business is financially healthy.
BE’s beta of 5.34 reflects the stock’s tendency to move sharply — the 15.5% decline on Thursday is in line with that characteristic.
The stock closed at $159.99 in the previous session before the data center news caused it to fall on March 6.
