Bloom Energy shares dropped 18% on Friday, resulting in a 28% total loss for the week. Forced selling pressure drove the decline following the company's removal from the Russell 2000 Index.
This index rebalancing overshadowed broader market trends within the AI and data center sectors. The sell-off occurred during a period of high volatility for AI infrastructure stocks as investors evaluate sector valuations.
Despite strong revenue growth, the company faces ongoing concerns regarding profitability and high valuation multiples. Recent insider selling also contributed to the downward pressure on the stock.