Bloom Energy (NYSE: BE) shares advanced more than 5% in premarket trading Monday, reaching $194.50, as investors bought the dip ahead of the company's second-quarter earnings release scheduled for July 28. The move comes after the stock touched a low of $184 on Friday, extending its retreat from the year-to-date peak of $350. Despite the bounce, BE remains nearly 50% below its 2025 high, raising questions about whether the rebound can hold.
Strong Revenue Growth Expected
Bloom Energy, a provider of solid oxide fuel cell technology, has been a key beneficiary of the surging demand for electricity from data centers. The company has secured major contracts with Oracle, Nebius, and Brookfield, positioning it to capitalize on the ongoing AI-driven infrastructure buildout. Analysts project second-quarter revenue of $827 million, representing a 106% year-over-year increase, followed by third-quarter revenue of $933 million, up 80%. For the full year, revenue is expected to jump from $2.02 billion in 2024 to $3.74 billion, with further acceleration to $6.46 billion in 2026 as recently announced deals begin contributing.
In the most recent quarter, Bloom Energy reported revenue of $750 million, up 130% year over year, with gross margins improving to 30% and operating income reaching $72.2 million. The company's financial trajectory has drawn bullish calls from several Wall Street firms. JPMorgan raised its price target from $267 to $346, while Susquehanna increased its target from $293 to $298. Baird set a target of $310, and the consensus analyst target stands at $254.
Options Market Suggests Caution
Despite the positive earnings outlook, the options market is pricing in significant volatility. Implied volatility stands at 264%, with open interest rising to 160,000 contracts. The put/call ratio has climbed to 2.65, indicating that bearish bets outnumber bullish ones by a wide margin—a historically negative signal for near-term price action. This divergence between analyst optimism and options positioning suggests that traders are bracing for a potential downside move following the earnings report.
The broader market context also warrants attention. Recent earnings from major tech firms like Alphabet and Tesla have highlighted the tension between AI spending surges and investor patience, as noted in our coverage of Alphabet and Tesla earnings jolting markets. Meanwhile, the S&P 500 and Nasdaq face multiple drivers this week, including earnings, Fed policy, and geopolitical tensions, as discussed in our analysis of three key drivers for the S&P 500 and Nasdaq.
Technical Picture Points Lower
From a technical standpoint, Bloom Energy's daily chart shows the stock has broken below the critical support level of $231, which was the June 10 low. It now trades below the 100-day moving average, while the Average Directional Index (ADX) has risen to 25, its highest since early June, signaling a strengthening downtrend. The stock is hovering near the pivot reverse level of the Murrey Math Lines tool, a zone that could act as either support or resistance.
If the earnings report fails to catalyze a sustained rally, BE could decline further toward the ultimate support level of $125. Conversely, a positive surprise might drive a rebound to the Major S/R pivot point, though the options data and technical indicators suggest the path of least resistance remains lower.
This article is for informational purposes only and does not constitute financial advice.
