This name powering AI reports earnings after the bell. Watch these levels, according to the charts
Bloom Energy is a name I’ve probably covered more frequently here on this weekly column than any other name (including NVDA). That’s because it carries so much potential, has realized so much enormous volatility and price appreciation and, in many cases, caused so many headaches. Bloom Energy reports earnings after the bell. CNBC Pro editor John Melloy replied, “Buckle up,” when I asked to cover BE. The structural story behind Bloom is as compelling as any in the energy space right now. Bloom is a “behind-the-meter” solution, meaning their fuel cells systems sit on the customer’s physical property and generate on-site power completely bypassing the grid. Further, the existing grid is not expected to be able to generate enough power to satisfy the massive power center demand. Finally, there’s the speed of implementation. Bloom’s solid-oxide fuel cells are deployed in months, not years compared to traditional North American utility grids that face wait times stretching five years or more. The last time I covered Bloom Energy was Feb. 3 just before reporting earnings on Feb 5th, 2026. Back then, as BE was trading at $169, I projected a target zone of $223-$246, which he hit last week. However, between then and now, the stock took a massive round trip from $173 down to $117, found a low and ripped higher to hit the target. As I said, the company is awesome and has a ton of potential but can be a real barn burner to hold if you don’t know how to manage risk! High bar after 5 consecutive earnings beats The Street is expecting $551 million in revenue, which would mark a year-over-year expansion of nearly 70%, per LSEG. Earnings are also expected to have skyrocketed to 13 cents per share from 3 cents per share in the year-earlier period. Looking at a chart of BE weekly overlaid with next-12-months forward PE, we’ll find a pretty tight correlation of price and forward PE. That is, until around the 8-month mark. Notice how the stock price is moving higher, but the forward PE is making 2 lower-highs? Why is that? I think this company, one of the main companies that may power the insatiable AI data center demand, is showing signs of growing into its valuation. The expected growth is astronomical, resembling percentage changes seen in Nvidia back in 2023-2025. For 2026, revenue is expected to be $3.23 billion on $1.40 in annual earnings per share. Those figures next year are expected to grow 62% and 123% respectively — in one year. Are those projections guaranteed to be realized? Absolutely not. But institutions and their massive firepower are seeing these same analysts projections and certainly plowing capital into names like this that have the ability to change the future. Now, if the analyst community is wrong and those projections are not realized, we’ll have to rely on our technical analysis skills to control risk and let price action tell us when things are not unfolding as originally planned. We at Inside Edge Capital manage portfolios for clients using a combination of technical and fundamental analysis. Fundamentals tell you which stocks you should be trading, and technicals tell you when to trade them. Bloom is one of the most volatile stocks in the market as previously mentioned so risk management is key. I’ve traded this stock several times in our smaller “fast money” accounts and been stopped out multiple times. No good because I want to participate in the bigger 3+ year projected growth, should it materialize. The way to hold this one is not with tight stops, but with appropriate position sizes. In our flagship growth portfolio, Tactical Alpha Growth (TAG), we hold a 2% allocation that is small enough to not hurt us if the stock turns south again, but large enough to make a meaningful impact on our returns if the stock grows from $3 billion in revenues this year to almost $10 billion three years from now. The expected move tonight according to the options market is +/- $31. Currently BE is trading at $221. So if the report misses, we could easily see the stock as low as $190. Looking at the technicals, we see a resistant ceiling around $175-$180 in the past four months that eventually gave way to a large gap up on historically high volume of around 25 million shares. If the report misses tonight, I’m expecting to see these levels tested, which are fortified by the 20- and 50-day moving averages. This is NOT a recommendation to buy or sell. We counsel our clients with in-depth financial planning before allocating their portfolios into our models. Active investing is a dangerous thing to do without a proper risk assessment and a comprehensive financial plan completed by a company with a certified financial planner — such as ours. -Todd Gordon, Founder of Inside Edge Capital, LLC We offer active portfolio management and financial planning for retail investors, as well as regular market updates like the idea presented above at www.InsideEdgeCapital.com DISCLOSURES: Todd owns BE personally and for clients in his wealth management company Inside Edge Capital, LLC. Charts shown are Koyfin and TIKR. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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