What Happened?

Shares of electricity generation and hydrogen production company Bloom Energy (NYSE: BE) jumped 5.7% in the afternoon session after the company built on recent positive momentum as it forged a multi-billion dollar partnership and reported strong quarterly results. Bloom Energy entered a $5 billion partnership with Brookfield Asset Management to build AI factories powered by its fuel cell technology. This deal was seen as a strong endorsement of its technology. Adding to the good news, the company delivered its fourth straight quarter of record revenues in the third quarter, with sales soaring 57% year over year. To meet the rising demand, Bloom Energy also planned to double its manufacturing capacity by the end of 2026. In response to these developments, several analysts raised their price targets on the stock, including firms like Susquehanna, J.P. Morgan, and HSBC.

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What Is The Market Telling Us

Bloom Energy’s shares are extremely volatile and have had 70 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 3.8% on the news that the company announced the pricing of an upsized $2.2 billion offering of convertible senior notes. The offering for these notes, which are a type of debt that can be turned into company stock, was increased from an initial plan of $1.75 billion. This type of financing often concerned investors because it could lead to more shares being created in the future, potentially lowering the value of existing shares. The deal came with a conversion price set at a 52.50% premium over the stock's closing price from the previous day. This news followed a period of positive developments, including a report of record third-quarter revenue.

Bloom Energy is up 509% since the beginning of the year, and at $142.44 per share, has set a new 52-week high. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $9,810.

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