Exiting Position: Bloom Energy Corporation (NYSE: BE)
Published on 2025-09-19
Today, shortly before market close, we exited our position in Bloom Energy Corporation, selling our shares at a realized price of US$85.00. This change in position comes less than two weeks after our buy recommendation was made at a price of US$55.00 per share. Our decision is a result of the significant and rapid share price expansion which Bloom has seen over the past two weeks, which has moved the price of shares outside of the range in which we would consider them attractively valued.
Since entering our position in Bloom, the company has been subject to a variety of positive developments. The first was Oracle Corporation’s announcement of a blowout quarter, which drove the company’s equity up nearly 40% in a singular day. Oracle’s success could contribute to further demand for Bloom’s products which ultimately had a positive impact on shares. On the same day, MTAR Technologies, an Indian supplier of fuel cell technologies, announced a $44M deal with Bloom for the supply of parts for Bloom Boxes. The market liked this as a positive signal for Bloom to secure further bookings and orders in the coming months. The last positive catalyst has been the analysts upgrades which have been thrown at Bloom, including Morgan Stanley who raised their target price to US$85.00 versus a previous US$44.00, and UBS who upgraded their target price to US$105.00 compared to a previous US$41.00.
Ultimately none of this news had a significant impact on our view on the company. Our perspective has been that Bloom’s product offering is highly competitive in a market that is growing rapidly, and based on our valuation exercises it did not appear that share prices reflected that at US$55.00. After an increase of ~55% in share price, we no longer hold the sentiment that shares are attractively valued. Although there is room for further upside, Bloom is no longer a high conviction idea for us in spite of the lack of change in fundamentals. It is possible that shares continue to ride the positive momentum they have been exposed to recently, but ultimately we are not a trading firm or behavioural specialists. When an equity is no longer attractively priced, we exit our position, and this is what has occurred with BE.
Our position represented a gain of ~55% in USD terms and ~57% in CAD terms. On an annualized basis, this accrues to over 1.3 billion percent. For more details on our buy thesis, please read our report on Bloom Energy Corporation and GE Vernova Inc. found here (link).