Weekly insights + SMS alerts
Bloom Energy Corp. (NYSE:BE) stock jumped nearly 12% in Friday's premarket trading, rebounding after a 16.41% decline in the previous session, as investors reacted to a major fuel cell project tied to Google's $17 billion data center investment in Wyoming.
Nasdaq futures rose 1.81%, while S&P 500 futures gained 0.38%, signaling a broader market rebound.
Alphabet Inc. (NASDAQ:GOOGL) subsidiary Google announced a $17 billion investment to build its first data center in Wyoming.
The project involves Tallgrass Energy, Black Hills Energy, American Electric Power Co. Inc. (NYSE:AEP) and Related Digital.
Google said the development includes an agreement with AEP for a 702-megawatt fuel cell project featuring carbon capture and storage technology.
"The fuel cells for this project will be made in America by Bloom Energy and will help minimize emissions and water use in the production of energy for our data infrastructure," said Steve Walter, Google's vice president of global infrastructure and energy.
Tallgrass Energy plans to store captured carbon emissions at its Eastern Wyoming Sequestration Hub.
Bloom Energy will also join Google and its partners on a community council focused on local development priorities in Cheyenne.
Despite Friday's rebound, Bloom Energy remains below its major moving averages.
The stock trades 16.2% below its 20-day simple moving average (SMA) of $222.79 and 24.4% below its 50-day SMA of $246.96. It also remains 16% below its 200-day SMA of $222.27.
These levels suggest continued pressure on the stock's broader trend, although shares have gained 22.4% over the past year.
The moving average convergence divergence (MACD) indicator remains below its signal line, with a negative histogram. This signals weak momentum and suggests that rallies could face resistance.
The 20-day SMA also remains below the 50-day SMA, reinforcing the near-term bearish trend. However, the 50-day SMA remains above the 200-day SMA.
Traders are watching $186 as a key support level. Holding above that price could help sustain the rebound.
The stock carries a consensus Buy rating and an average analyst price forecast of $290.22.
Barclays upgraded Bloom Energy to Overweight on Nov. 3 but lowered its price forecast to $289. Citigroup raised its forecast to $284 on Oct. 29 while maintaining a Neutral rating.
Bloom Energy trades at a price-to-earnings ratio of 101.5, reflecting a premium valuation.
Bloom Energy's MarketDash Edge Rankings show a sharp contrast between growth potential and recent stock performance.
Its Growth score stands at 98.41, while Momentum is much weaker at 19.14. The Value score is 5.3, highlighting valuation concerns.
The rankings suggest strong growth prospects, although weak momentum and elevated valuation could limit near-term gains.
Bloom Energy also has significant exposure through several exchange-traded funds.
The stock accounts for 9.23% of the NestYield Visionary ETF (NASDAQ:EGGQ), 8.57% of the iShares Global Clean Energy ETF (NASDAQ:ICLN) and 7.61% of the iShares Energy Storage & Materials ETF (NASDAQ:IBAT).
Changes in these funds' holdings could affect demand for Bloom Energy shares.
BE Price Action: Bloom Energy shares rose 11.51% to $186.80 in Friday's premarket trading, according to market data.
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
