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Bloom Energy (NYSE:BE) posted the best quarter in its history, but the stock still lost 26.6% of its value in October, according to data provided by S&P Global Market Intelligence.
Bloom Energy makes fuel cells that can generate power on-site at facilities such as artificial intelligence (AI) data centers without waiting years for the grid. Even though its core technology is fundamentally solid, a mix of project hiccups, cash burn, and macro jitters dragged the stock down.
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One of the biggest company-specific overhangs was Project Jupiter, Oracle's (NYSE:ORCL) roughly 2.45-gigawatt AI campus in New Mexico, designed to run on Bloom fuel cells.
The project's gas supply depended on a 17-mile Energy Transfer pipeline whose rights-of-way across state trust land had been repeatedly denied, pushing its targeted in-service date from August 2026 to February 2027. Oracle issued a force-majeure notice in September. Without the pipeline, Bloom's fuel cell servers cannot operate.
In October, Bloomberg reported that Oracle was trucking natural gas to some data centers while it waited for pipelines, and considering the same approach at Project Jupiter. Investors already knew about the permitting delay, and this new development was a reminder Bloom's growth opportunity still depended on infrastructure arriving on schedule.
Oracle later confirmed Bloom's fuel cells remain the primary power source for Project Jupiter. But that reassurance did little to offset a broader sell-off in AI-power and data-center stocks.
The slide happened even as business fundamentals looked incredible on paper. During its late-October earnings call, Bloom Energy reported a jaw-dropping 138% year-over-year jump in third-quarter revenue to a record $1.2 billion.
Adjusted operating margin jumped to 23.1% from 8.9%, with the company earning more in operating profits in one single quarter than it did in all of 2025.
Management also raised full-year revenue outlook to $4.5 billion, or about 122% growth.
Bloom Energy stock still tumbled more than 10% after earnings, partly because the company posted negative free cash flow of $181 million in the quarter. With a backlog growing faster than revenue, the company is spending heavily to expand capacity. That's a good problem to have.
Investors began to reevaluate high-flying AI stocks, including infrastructure plays, following political shifts and midterm election cycles. When market sentiment turns defensive, richly valued stocks are often the first to be heavily trimmed, regardless of how strong their long-term narrative looks.
That's what happened with Bloom Energy. There's no demand or fundamental problem here. Customers continue to sign up. This month, NTT DATA agreed to deploy 900 megawatts of Bloom Energy's fuel cells across data centers worldwide, with shipments starting in 2027. The companies called it Bloom's largest international project yet.For long-term investors, Bloom Energy's business looks stronger than the near-term stock price chart suggests. I'm convinced this stock is a buy-and-hold at current prices.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and Oracle. The Motley Fool has a disclosure policy.
Why Bloom Energy Stock Slumped 26.6% in October, and Why the Pullback is a Buying Opportunity was originally published by The Motley Fool
