Bloom Energy stock jumps after Nancy Pelosi reveals new position: is BE a buy?

Bloom Energy stock jumped more than 7% in premarket trading Tuesday after congressional financial disclosures showed that former House Speaker Nancy Pelosi had established a significant new position in the fuel-cell power company.

The filings, disclosed on August 21, showed Pelosi’s household purchased 15,000 Bloom Energy Class A shares through two transactions on July 24 and July 28.

The disclosure also included 200 call options with a $100 strike price expiring in June 2027.

Based on the reporting ranges required under congressional disclosure rules, the combined position is valued at between roughly $4.25 million and $14.5 million.

The purchase represents Pelosi’s first reported trade in Bloom Energy and comes as investors increasingly focus on companies that could benefit from the enormous electricity requirements of artificial-intelligence data centers.

Pelosi also disclosed purchases of Intel shares and call options.

Intel is a Bloom Energy customer, adding another connection to the broader AI infrastructure and data-center power theme.

Why investors pay attention to Pelosi's trades

Pelosi's stock transactions have attracted considerable attention from retail investors, partly because of her reported investment performance.

A July MarketWise survey of 1,005 US retail investors found that 34% of so-called “copycat” investors — people who follow trades made by executives, politicians, celebrities or financial influencers — said they tracked Pelosi’s investments.

Only Warren Buffett ranked higher, at 35%.

Pelosi's reported trading record has also helped fuel interest.

According to Quiver Quantitative, her trades have generated cumulative returns of 965% since 2014, compared with 313% for the S&P 500.

Her portfolio gained about 65% in 2023 and 71% in 2024.

Last year, the return was more modest at 20%, but still exceeded the S&P 500's 17% gain and Berkshire Hathaway's 11%.

That performance has made Pelosi's disclosures closely watched despite the controversy surrounding congressional stock trading.

MarketWise found that 86% of retail investors believe members of Congress trade using non-public information.

Nearly 59% said lawmakers should be prohibited from trading individual stocks, while another 21% favored allowing such trading only through a blind trust.

A congressional trade should therefore not be treated as a standalone investment signal, but the timing of Pelosi’s Bloom Energy purchase is notable given the company's rapidly expanding AI-related business.

Bloom's AI power business is accelerating

The disclosure comes as Bloom Energy's underlying business is showing substantial growth.

The company’s second-quarter revenue crossed $1 billion for the first time, rising about 166% year over year.

Management subsequently raised its full-year 2026 revenue forecast to between $3.9 billion and $4.2 billion, citing accelerating demand for power from AI data centers.

Bloom has been expanding its relationships with major technology companies as data-center operators search for faster and more reliable sources of electricity.

In April, the company announced an expanded agreement with Oracle that could support up to 2.8 gigawatts of fuel-cell capacity, including 1.2 GW already being deployed across US projects.

Bloom has also said its AI infrastructure business now includes nearly two dozen customers and approximately 250 MW outside the Oracle agreement.

The opportunity could expand further as hyperscalers and AI companies commit hundreds of billions of dollars to new data-center infrastructure.

Nvidia, for example, has announced major financing arrangements connected to AI infrastructure, including a reported commitment of up to $105 billion to support an OpenAI data-center project in Ohio.

Bloom is positioned to benefit from this broader infrastructure spending because its fuel-cell technology can provide power directly at data-center sites, potentially helping operators overcome constraints on grid connections.

Analysts see strong growth but valuation is a concern

Bloom's growth outlook remains one of the main reasons investors continue to support the stock.

Yahoo Finance data shows analysts expect revenue to rise about 103% this year to roughly $4.13 billion, followed by revenue of more than $6.77 billion next year.

Earnings are also expected to improve substantially, with earnings per share forecast to rise from 76 cents to $2.71 this year and nearly double to $4.89 next year.

The company’s Power Connect technology could provide another growth catalyst, with Bloom saying it can reduce onsite power installation time by more than 40%.

JPMorgan recently raised its price target for Bloom Energy to $346 from $267 while maintaining an Overweight rating.

Across Wall Street, however, enthusiasm is not universal.

Twenty-six analysts cover the stock, with a consensus Moderate Buy rating and an average 12-month price target of $248.05, implying roughly 21% upside from current levels.

The ratings are relatively evenly distributed: three analysts have a Strong Buy rating, 10 recommend Buy, 12 rate the stock Hold and one has a Sell rating.

BE's valuation leaves little room for disappointment; is it a buy?

Bloom's growth story has already been reflected heavily in its share price.

The stock has nearly doubled this year, despite a sharp recent correction.

Shares have fallen from a year-to-date high of around $350 to about $204 and declined for seven consecutive sessions, reaching their lowest level since August 3.

The correction has brought the stock closer to levels where investors may see renewed value, but valuation remains a major concern.

Bloom's forward non-GAAP price-to-earnings ratio is around 74, according to Invezz analyst Crispus Nyaga, far above the S&P 500's average of slightly more than 20.

That premium means Bloom must continue delivering rapid revenue and earnings growth to justify its valuation.

According to The Motley Fool, Bloom doesn't have to post triple-digit gains to beat the market, and with Bloom's outlook, mature growth could outpace the S&P.

"Earnings will likely have to catch up with expectations -- there's likely volatility ahead -- but if you've got a long time horizon, Bloom is a compelling energy stock to add to your portfolio," it said.