Bloom Energy stock fell 13.8% on Tuesday morning, hours before the fuel cell maker reports second-quarter results. The slide has cut the stock by more than half since its June high, unwinding part of a rally built on data center power deals with Brookfield Asset Management and Oracle.
Bloom Energy stock tumbled 13.8% as of 10:15 a.m. ET on Tuesday, with the fuel cell maker due to report second-quarter results after the market closes today. The stock has been cut by more than half since it reached an all-time high last month.
Investors had pushed the stock parabolic on expectations of billions in revenue from data center operators using its fuel cells, and reality is setting in after too much growth was priced in. Even after the crash from the June high, Bloom shares remain up by over 80% this year. Some investors nervous that the growth story might not pan out as anticipated appear to be locking in those 2026 gains.
Brookfield and Oracle deals drove the run-up
Much of the stock's gains came after announcements of plans to build and finance power for data centers. In late June, Bloom and Brookfield Asset Management announced an expansion of their strategic data center partnership, quintupling the original $5 billion in planned financing to $25 billion.
Oracle separately signed agreements with Bloom for up to 2.8 gigawatts of fuel cell systems. Bloom closed at $188.18 on July 27, 2026, carrying a market capitalization of $53.53 billion. Its one-month return stood at -37.83%, against a 441.53% gain over the past 52 weeks.
Fuel cells as a way around grid constraints
Columbia Seligman Global Technology Fund named Bloom a leading contributor in its second-quarter 2026 investor letter. According to the fund: "Data-center operators have increasingly turned to Bloom's solid-oxide fuel cells to bypass grid constraints" — a shift it tied to expectations that accelerating AI data-center construction would drive demand for onsite power generation.
Bloom's mid-year Data Center Power Report, published June 15, 2026, found that 61% of data center developers plan to use onsite power if grid capacity falls short. The report projects US IT load capacity could roughly double from approximately 80 GW in 2025 to around 150 GW by 2028. It further estimates that onsite power solutions could be adopted by 30% of data center sites within the next seven years.
Regulators reject parts of the New Mexico build
Execution concerns and regulatory headwinds have weighed on the shares. Aspects of Oracle's large-scale project in New Mexico faced rejections from regulators, and community opposition over emissions and resource usage has surfaced around some of these projects.
Concerns remain among investors that those plans will fizzle out, leaving Bloom without billions in orders that were already priced into the stock. Yet hyperscalers and AI infrastructure developers are still announcing spending increases.
Sources: Motley Fool, Insider Monkey, Crypto Briefing
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