Bloom Energy stock fell 12% on Sept. 24, 2025, despite strong results, due to valuation concerns and AI-driven hype fading.

Bloom Energy stock dropped around 12% on September 24, 2025, reversing recent gains despite strong second-quarter results and major deals with Oracle and American Electric Power. The decline followed downgrades from Bank of America and Jefferies, both citing concerns over the company’s high valuation, limited long-term growth visibility, and stock price surge driven more by AI hype than fundamentals. Although revenue and earnings exceeded expectations, challenges remain, including fuel cell durability, service margins, and intense competition from established players. The stock’s 650% year-on-year rise and elevated valuation have raised investor caution, with short interest and volatility contributing to the sharp pullback.