Shares of Bloom Energy Corp (NYSE:BE) demonstrated a marked recovery on Friday, climbing against a backdrop of relatively modest gains across the broader market, where the S&P 500 index advanced approximately 0.2%. This resurgence comes after a period of volatility and a pullback in the company's stock value toward the end of December.
The driving force behind this rebound is the company's recent announcement of a significant credit arrangement. Bloom Energy secured a $600 million senior secured multicurrency revolving credit facility with Wells Fargo Bank, which is set to mature in December 2030. The intended use for the proceeds from this facility includes financing working capital requirements, funding capital expenditures, and potentially pursuing acquisitions. This strategic financial move aims to strengthen the company’s balance sheet amid its ongoing scale-up initiatives.
Notwithstanding the positive nature of the credit agreement, Bloom Energy's shares experienced a 12% downturn over the last month, moving down substantially from a 52-week peak of $147.86 attained earlier in 2025. Technical support for the stock appears to be consolidating around the $88 level. Should the price fall below this point, it may trigger further declines, whereas maintaining levels above this threshold could set the stage for a recovery.
In terms of technical performance, Bloom Energy’s stock presently trades about 9.8% below its 100-day simple moving average (SMA) and 4.1% under its 200-day SMA, signaling a bearish trend in the short to medium term. Despite this, the stock has exhibited robust long-term performance, climbing roughly 307% over the past year and remaining closer to its annual highs than lows.
Momentum indicators convey a mixed outlook; the relative strength index (RSI) rests at a neutral level, indicating neither overbought nor oversold conditions. In contrast, the moving average convergence divergence (MACD) indicator is currently positioned below its signal line, suggesting prevailing bearish pressure.
Investor focus is now turning to Bloom Energy's forthcoming earnings release scheduled for February 26. Analysts forecast earnings per share (EPS) of $0.24, a decline from $0.43 reported during the same period last year. Revenue is projected to rise to approximately $644.13 million from $572.39 million year-over-year, reflecting anticipated growth in sales despite narrowing profitability.
Bloom Energy holds substantial positions within several key clean energy exchange-traded funds (ETFs). Notably, it comprises 9.38% weight in the iShares Global Clean Energy ETF (NASDAQ:ICLN), 6.91% in the First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN), and 7.82% in the SPDR S&P Kensho Clean Power ETF (NYSE:CNRG). Given this significant ETF weighting, notable inflows or outflows in these funds would have an amplified effect on the stock through automatic portfolio adjustments.
During Friday's trading session, shares of Bloom Energy rose 10.3%, reaching a price of $95.84 as reported by real-time market data services. This uptick suggests renewed investor confidence amid positive developments in the company’s financing and prospects.
Key Points:
- Bloom Energy announced a new $600 million revolving credit facility with Wells Fargo maturing in 2030 to support operational needs and expansion efforts.
- The stock experienced a sharp 12% decline over the previous month but is showing signs of establishing technical support near $88.
- Key technical indicators display mixed signals, with the RSI neutral and MACD suggesting bearish momentum.
- Upcoming earnings scheduled for February 26 are anticipated to show lower EPS but higher revenue compared to the prior year.
Risks and Uncertainties:
- The breach of the $88 support level could precipitate further declines in share price.
- Bearish technical indicators such as the MACD below its signal line highlight ongoing downward pressure.
- The expected decline in earnings per share compared to the previous year may temper investor sentiment.
- Heavy reliance on ETFs for stock exposure could result in amplified volatility due to fund inflows or outflows.