Actions of Flowering energy (NYSE: BE), which makes fuel cells, fell 15% through Thursday this week. That said, the stock had managed to reduce this loss to “only” 12.5% ââas the close of the trading day approached July 8. really helps fill the story.
The key is to step back and look at the big picture. Bloom Energy stock has rebounded from the week of May 10, rising more than 40% at one point. The decline so far this week is therefore a sort of reversal of that lead, with stocks now having risen by around 15% since the start of the rally.
The price reversal actually started on June 28 and continued through the shortened holiday week. There has been no particular news during this period from the company that appears to have caused such a move, so it is likely that Mr. Market and his normal gyrations are responsible for it.
Bloom Energy is an interesting clean energy game that always tries to build a sustainable profitable business. This often results in mercurial investors pushing their stocks up and down for what seems like little reason. However, progress is being made at a fundamental level.
For example, in the first quarter, the company’s adjusted loss was $ 0.07 per share, which was a significant year-over-year improvement from the first quarter of 2020, where it lost $ 0. $ 34 per share. While the past year or so has not been a normal time, given the global coronavirus pandemic, Bloom Energy estimates that operating cash flow is on track to “approach positive” in 2021 with revenues of up to $ 1 billion.
In other words, things continue to move forward commercially as the company seeks to establish its fuel cell technology with a growing list of customers.
Bloom Energy is not a great option for risk averse investors, given that its fuel cell technology is still in the early stages of acceptance. That said, for those studying clean energy stocks, it might be worth digging into.
You just have to go there knowing that despite the progress you have made, profitability is still on the horizon. This suggests that stock price volatility as we have seen over the last month and week should remain a persistent problem.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.