Bloom Energy Corporation

Bloom Energy Corporation (NYSE: BE) provides technology solutions to customers. The Company manufactures advanced and versatile energy platforms, which deliver two products: the Bloom Energy Server and the Bloom Electrolyzer. With over 1.2 gigawatts of Energy Servers operating in more than 1,200 locations and seven countries. Its solid oxide fuel cell technology platform is the foundation for its Energy Servers and Electrolyzers.

Recent Business and Financial Updates

• Strong Revenue Growth and Enhanced Profitability: In the second quarter of 2024, the company recorded a revenue of USD 335.8 million, reflecting an 11.5% increase compared to the same period in 2023. Gross margin also improved, reaching 20.4%, an increase of 1.7 percentage points year-over-year. On a non-GAAP basis, the gross margin was 21.8%, up 1.4 percentage points from the previous year. Additionally, the operating loss was reduced to USD 23.1 million, representing a year-over-year improvement of USD 31.3 million. On a non-GAAP basis, the operating loss was further minimized to USD 3.2 million, marking an improvement of USD 22.7 million year-over-year.
• Improved Financial Position Through Strategic Actions: The company's financial position was significantly strengthened through the issuance of 3% convertible green notes. This strategic financial action not only improved liquidity but also supported its long-term sustainability goals. This move bolsters the company’s ability to pursue further growth opportunities while maintaining a responsible approach to capital management.
• Strategic Partnerships Fuel Market Expansion: The company has entered into a new agreement with CoreWeave, a leader in AI, to power a high-performance data center located in Volo, Illinois, owned by Chirisa Technology Parks. In addition, Silicon Valley Power secured municipal approval to enter into an agreement utilizing Bloom’s fuel cells to power a 20-megawatt AWS data center in Santa Clara, California. These partnerships underscore the company's continued focus on expanding its market presence in the energy solutions sector.
• Leadership Insights: Capitalizing on Emerging Opportunities: KR Sridhar, CEO of Bloom Energy, highlighted the growing demand for electricity, which is expected to surpass grid supply. He emphasized that this presents a significant opportunity for Bloom Energy, which is seeing increased commercial interest in its products and solutions. The company continues to execute well, advancing its technology while expanding its team to support future growth.
• Reaffirmed Financial Outlook for 2024: Bloom Energy reaffirmed its full-year 2024 financial outlook. The company expects to achieve revenue in the range of USD 1.4 to 1.6 billion, with a non-GAAP gross margin of approximately 28%. Additionally, non-GAAP operating income is forecasted to be between USD 75 million and USD 100 million, reflecting the company’s confidence in its growth trajectory and commercial pipeline.
• Key Financial Metrics: Significant Progress and Improved Performance: In the second quarter of 2024, Bloom Energy demonstrated strong financial progress. The company reported revenue of USD 335.8 million, up from USD 301.1 million in the same quarter of 2023. Gross profit increased to USD 68.5 million, with a gross margin of 20.4%. While operating expenses were USD 91.7 million, operating loss significantly reduced to USD 23.1 million, down from USD 54.5 million in the previous year. On a non-GAAP basis, gross profit improved to USD 73.2 million, while operating loss was reduced to USD 3.2 million. These results highlight the company’s effective cost management and operational efficiency improvements.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 44.49, currently consolidating, with expectations of a consolidation or an upward momentum as an important resistance of USD12.00 is broken. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-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 ‘WATCH’ rating has been given to Bloom Energy Corporation (NYSE: BE) at the closing market price of USD 10.25 as of October 08, 2024. 

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. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is October 08, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.