Bloom Energy Corporation

Bloom Energy Corporation (NYSE: BE) is a provider of commercially viable solid oxide fuel- cell based power generation platform that provides power to businesses, essential services, critical infrastructure, and communities. The Company's technology primarily produces electricity and hydrogen. The Company's fuel-flexible Bloom Energy Server uses biogas, hydrogen, natural gas, or a blend of fuels, to create sustainable power.

Recent Business Updates:

• Operational and financial Highlights for Q2FY23:
  • Second-quarter 2023 revenue reached USD 301.1 million, marking a 23.8% increase compared to the USD 243.2 million recorded in the second quarter of 2022.
  • Product and Service revenue for the second quarter of 2023 amounted to USD 257.0 million, reflecting a 21.2% increase from the USD 212.1 million reported in the second quarter of 2022.
  • Gross margin for the second quarter of 2023 stood at 18.7%, representing a significant improvement of 19.5 percentage points compared to the (0.8%) margin in the second quarter of 2022.
  • Non-GAAP gross margin for the second quarter of 2023 reached 20.4%, a slight increase of 0.8 percentage points from the 19.6% margin in the second quarter of 2022.
  • The operating loss for the second quarter of 2023 was USD (54.5) million, indicating a notable improvement of USD 47.7 million compared to the operating loss of USD (102.2) million in the second quarter of 2022.
  • The non-GAAP operating loss for the second quarter of 2023 was USD (25.9) million, which increased by USD (1.3) million compared to the non-GAAP operating loss of USD (24.6) million in the second quarter of 2022.
  • Bloom Energy has successfully installed the first phase of a 10-megawatt solid oxide fuel cell system at Unimicron Technology Corp. in Taiwan. The installation demonstrates Bloom Energy's ability to provide clean and reliable power solutions, which are increasingly in demand as Taiwan transitions from centralized coal and nuclear power facilities, reducing emissions and supporting local manufacturing.

Technical Observation (on the daily chart)

The stock has corrected by around 53.93% from its recent high of USD 16.18 formed on February 16, 2023, and near its decent support levels of USD 10.00 to USD 12.00.  The RSI (14 period) momentum indicator is at a value of 46.64, upward trending with expectations of some consolidation or a short-term upside momentum. Moreover, the price is currently positioned below both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistance levels.­­­­­­

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Bloom Energy Corporation (NYSE: BE) at the current market price of USD 12.42 as of October 17, 2023, at 07:45 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is October 17, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by the individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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