Bloom Energy (BE) Stock Drops: Big Shareholder Sells 3 Million Shares. Block Trading Deal. Why Coincidence, Low Pre-Market Rumors, And Analyst Pricing Models Lead to a Fall in Stock. is the down and no looking up.

04 March, 2025 | 3 Min Read

tickers: BE, MS

tickers affected by this

ticker	polarity	why?
BE	positively	Despite the short-term volatility caused by the block trade, the company’s strong financial performance and strategic positioning in the AI and hydrogen power sectors could attract long-term investors, potentially driving the stock price up in the future. Additionally, the significant increase in gross profit margin and the positive outlook for 2025 sales growth may instill confidence in the company’s future prospects, leading to a positive impact on the stock price.
MS	positively	The recent block trade in Bloom Energy (NYSE: BE) and the resulting market panic could potentially lead to a short-term buying opportunity for other investors, including those interested in the ticker interested in adding solid earnings companies MS could benefit from the increase in hydrogen fuel cell all interest in the market, should investors decide to diversify their clean energy portfolios. This might lead MS investors to buy some MS and others short a bubble in some tickers, leading more investor interest in clean energy stocks and benefitting MS’s valuations despite any mounting pressure Bloom may face.

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summary

Bloom Energy Stock Drops Despite Strong Earnings Report

Bloom Energy (NYSE: BE) delivered a powerful earnings report last week, but the good news isn’t helping this hydrogen fuel cell company Tuesday. Reports of a big “block trade” — a large shareholder selling 3 million shares of Bloom all at once — have investors spooked. After dropping by more than 13% in morning trading, as of 12:20 p.m. ET, Bloom Energy stock was down by about 5%.

Earnings Highlights

Bloom Energy beat analysts’ forecasts for Q4 with a stick on Thursday, reporting adjusted profits of $0.43 per share where analysts foresaw only $0.31, and revenue of $572.4 million, which was much more than forecast. (GAAP profits also rose impressively to $0.38 per share versus just $0.02 in the prior-year period.) 2024 was a record year for revenue at Bloom, with sales rising 10% from 2023 levels to $1.5 billion. The company finished the year strong, with 60% sales growth in Q4, and a huge 1,240 basis point increase in gross profit margin. Bloom even touted its involvement in the AI revolution, saying that its hydrogen power boxes are “the solution of choice for powering AI,” and asserting that it was ready to provide gigawatt-scale hydrogen fuel cell power for customers this year. Management forecast that sales would grow to approximately $1.75 billion in 2025, ahead of Wall Street forecasts.

Block Trade Concerns

Someone apparently wanted out of Bloom stock in a hurry, and that impatience is panicking other shareholders. Nor can I necessarily say that selling is a bad idea. Bloom remains unprofitable, and while it’s free cash flow positive, it’s trading for more than 160 times cash profits. It’s an overpriced stock, and overpriced stocks probably should be sold.