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Bloom Energy (NYSE:BE) stock usually hasn't stayed down long. Since September 2025, the fuel cell maker's shares have fallen 20% or more from a closing high five times. In four of the slides, the stock closed at a new high within around a month of its low.
The fifth is different. Bloom ended June 22 at a record $345.85, then fell 53% to $163.75 by July 29. Shares have risen about 71% since the low, to roughly $280 as I write. But they're still about 19% under the record, over 10 weeks after the bottom.
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The timing is strange, because Bloom, which sells power systems to artificial intelligence (AI) data centers, posted the largest quarter in its history. I don't think the business explains why this slide has lasted. The peak price and a short seller's reports probably do.
The run of quick rebounds began in September 2025, when Bloom sank 20% over three trading days and closed at a new high just six days after its Sept. 25 low. The biggest drop followed, a 46% slide from Nov. 3 to Dec. 17. Even that one was erased by Jan. 16, 2026, 30 days after the low. A 32% fall that ended March 30 took 14 days to recover, and a 24% drop that ended June 10 took just eight.
This time, though, the bounce has stalled short of the old high. Bloom's best close since the July low has been $295.78 on Oct. 6, still around 14% under the record.
If anything, Bloom's business sped up during the slide.
Bloom's second-quarter revenue climbed 166% year over year to around $1.07 billion, the first time the company passed $1 billion in one quarter. Revenue growth had already picked up from 36% in the fourth quarter of 2025 to 130% in 2026's first quarter. So the latest quarter made two accelerations in a row.
And management's forecast kept rising. In February, Bloom's guidance was for 2026 earnings per share of $1.33 to $1.48 on a non-GAAP (adjusted) basis. It raised the range to $1.85 to $2.25 in April, then to $2.55 to $2.85 when it posted second-quarter results on July 28.
Said another way, since the June record shares are down around 19%. But management's own earnings forecast for the year is up about 32%.
One difference is where the drop started. On June 22, Bloom's shares cost around 170 times guided earnings, using the midpoint of management's 2026 adjusted earnings-per-share forecast back then.
That was pricier than either of the year's earlier peaks. When the stock topped out on Feb. 25, it cost around 124 times guided earnings. At its May 21 high, the price was about 150 times guided earnings.
Every peak, in other words, came at a richer valuation than the last one.
At the stock's current price of roughly $280, Bloom trades near 100 times guided earnings on the higher forecast. A return to $345.85 would still mean paying about 128 times guided earnings -- more than at the February peak.
The other difference is a challenge to Bloom's own reporting. On July 8, Hunterbrook Media, an outlet that has said it could profit from a fall in the stock, put out a report questioning Bloom's financial results, its accounting, and its supply of scandium oxide, a material used in its fuel cells.
Bloom said it "categorically rejects" the claims about its results and accounting, and that it has enough scandium oxide to meet current demand and its backlog. Yet, it also added a new risk factor about short sellers to its second-quarter filing. In that filing, Bloom said reports like this, "whether or not accurate, have resulted in significant volatility in the trading price of our common stock."
Hunterbrook, which disclosed that an affiliated fund was short the stock, followed up on July 30 with a second report questioning whether Bloom's fuel cells work as advertised. One strong quarter might not be enough to settle doubts like these.
Will this drop end like the other four? It could. Yes, a growth stock with sales climbing this fast could arguably earn its way back to the record sooner than I expect. But I wouldn't buy shares counting on history to repeat on its normal schedule. At around 100 times the earnings Bloom expects this year, I think the stock still needs its profits to catch up first.
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Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.
Bloom Energy Stock Has Fallen 20% or More 5 Times Since September 2025. It Recovered From 4 Within Weeks. was originally published by The Motley Fool
