Shares of Bloom Energy plunged 10.8% to $193.87 on Thursday, extending a brutal slide that has erased roughly 45% from the stock's $351.28 peak as traders grapple with a short-seller attack, stretched valuations, and pre-earnings jitters ahead of the company's July 28 quarterly report.
A Short Seller's Scandium Bombshell Refuses to Fade
Hedge fund-backed Hunterbrook published an investigation earlier this month alleging Bloom remains heavily dependent on China for scandium, a rare mineral essential to its fuel cells. The core claim: scaling from roughly 1GW of deployments to 5GW annually would require around 220 tons of scandium oxide, against global supply projected at just 240 tons. Bloom filed an SEC response calling the allegations "false and misleading" and asserted it is not dependent on China and has visibility to support production of 25GW of fuel cells per year. But the market hasn't fully bought the rebuttal — if Bloom can't secure enough scandium independently, its entire growth roadmap could stall.
A $25 Billion Deal Cuts Both Ways
Bloom and Brookfield expanded their strategic partnership fivefold on June 30 — from $5 billion to $25 billion — to finance fuel-cell-powered AI data centers globally. That deal propelled shares above $300 briefly. Yet Hunterbrook noted that 74% of Bloom's Q4 2025 revenue came from joint ventures with Brookfield , raising questions about whether the headline backlog reflects genuine end-customer demand or related-party financing. Investors need clarity on this concentration risk.
The Valuation Math Is Daunting
The stock has roughly tripled during 2026 and climbed about 950% over the past year.
Bloom's 2026 revenue guidance was raised to $3.4 billion to $3.8 billion, implying roughly 80% year-over-year growth. But at a ~$55 billion market cap, the stock trades at roughly 15× forward sales — a lofty price for a company with a debt-to-equity ratio of 2.90 and $44 million in insider selling over the past three months without any buying activity.
Earnings on Monday Are the Next Catalyst
Analysts expect EPS of $0.23 for the June quarter, which would flip from a loss of $0.03 a year earlier — more than 860% year-over-year growth.
The stock carries a consensus Buy rating with an average price target of $259. Any stumble on scandium disclosure or Brookfield revenue mix could trigger another leg down; a clean beat with supply-chain reassurance could stabilize the selloff. Monday's call is, effectively, a verdict on whether Bloom's AI-power narrative can withstand real-world scrutiny.