Why Bloom Energy Stock Popped Today
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Can tax credits from Congress save Bloom Energy stock?
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2 min read
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investment
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July 9, 2025
11:42 AM
The Motley Fool
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Can tax credits from Congress Bloom Energy stock
Bloom Energy (BE 18. 15%), the original hydrogen fuel cell stock, is soaring in mid-morning trading Wednesday after J
Morgan upgraded the stock to overweight with a $33 price target. 's right that price, it means Bloom stock could gain another 18% over the next 12 months -- on top of the 15. 5% the stock is already up today through 10:55 a
Image source: Getty Images
Morgan s Bloom Energy J
Cites Congress's decision to maintain 48E tax credits in President Trump's recently signed "One Big Beautiful Bill" (OBBB) as key to its optimism Bloom stock
The tax credits should add fit margin to Bloom at the same time as they encourage fuel cell system deployments, boosting Bloom's revenue
According to The Fly, J
Is expecting these benefits to begin appearing in Bloom's financial results in fiscal (which is also calendar) year 2026
However, the analyst also anticipates that Bloom might begin guiding investors to expect these imved results this year
And that means we might start seeing better guidance as early as July 31, when Bloom is expected to report its Q2 earnings
Is Bloom Energy stock a buy
Let's hope the analyst is right that, because as things stand today, Bloom Energy stock does look a bit pricey
Although the company turned fitable in Q4 last year, generally accepted accounting principles (GAAP) fits are still minimal, and the stock is trading for a P/E ratio well past 1,000
Bloom did generate positive free cash flow last year, but FCF is still only $77 million over the last 12 months, giving the stock a price-to-free cash flow ratio of 73 -- quite high even if fits grow at 25% annually, as most analysts predict
Tax credits or no tax credits, Bloom stock is still too expensive to buy
Rich Smith has no position in any of the stocks mentioned
The Motley Fool has no position in any of the stocks mentioned
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