BE
Oracle's Bloom Bet Is Already Up $316 Million
Article Summary
BUY- Bloom Energy (NYSE: BLUE) jumped 22% on Tuesday after Oracle (NYSEARCA: ORCL) exercised a warrant to buy 3.53 million shares at $113.28, creating a $316 million paper gain sitting on top of a $400 million bet.
- The warrant was part of a partnership announced last fall and expanded Monday, with Oracle contracting 1.2 gigawatts of Bloom capacity as part of broader plan to procure 2.8 gigawatts total.
- Bloom jumped 15% on the news, with the market correctly identifying what locked-in demand means for a company whose entire pitch is that AI data centers need power yesterday and cannot wait three years for grid to get its act together.
- Bloom's fuel cells generate electricity on-site using natural gas or hydrogen, which means data center developers can install them fast without getting in line behind every utility project in the country.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 37.3% | 25% | 85.0 ptsExcellent (37.3%) - Strong growth |
| EPS Growth Next 5Y ? | 84.4% | 25% | 100.0 ptsExceptional (84.4%) - Very high expectations |
| Target Price Upside ? | 26.7% above | 20% | 0.0 ptsAbove Target (26.7% above) - Target: $157.12 vs Current: $214.26 |
| Gross Margin % ? | 30.9% | 15% | 40.0 ptsModerate (30.9%) - Adequate margins |
| Drawdown from 52-Wk High ? | 18.4% | 15% | 20.0 ptsBarely a Dip (18.4%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About BE
- Bloom Energy Corporation designs, manufactures, sells, and installs solid oxide fuel cell systems for on-site power generation in the United States and internationally.
- It offers Bloom Energy Server, an energy server platform to convert fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels, into electricity through a non-combustion electrochemical process.
- The company also provides Bloom Electrolyzer for producing hydrogen.
- It sells its products through direct and indirect sales channels to utilities, data centers, retail, healthcare, education, telecom, manufacturing, and other industries.
- The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in 2006.
- Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California.