Bloom Energy Stocks Plummet After Downgrade by Jefferies

NEW YORK, NY — Shares of Bloom Energy, a company that focuses on electricity generation and hydrogen production, fell by 11.8% in the morning trading session on September 24, 2025. The decline followed Jefferies‘ decision to downgrade the stock from ‘Hold’ to ‘Underperform’ due to concerns regarding its high valuation and uncertain long-term growth prospects.

Jefferies analysts cited that there was limited visibility into Bloom’s growth potential beyond 2026. They expressed that there are signs of ‘over-exuberance’ among investors. Although Jefferies raised its price target to $31, this figure remains significantly lower than the current trading price of around $66.75, implying potential risks for investors.

This volatility in Bloom’s stock is not uncommon. Over the past year, the company has seen 67 price movements greater than 5%. Such sharp changes underscore the market’s reaction to recent news and trends surrounding the business. A day prior, Bloom shares dropped 8% after Bank of America reaffirmed a similar ‘Underperform’ rating while slightly raising its price target from $21.00 to $24.00.

Concerns persist regarding Bloom Energy’s fundamentals, especially following reports of insider selling that led to a cautious outlook among investors. While there is optimism about the company’s role in supplying power to artificial intelligence (AI) data centers, especially through its partnership with Oracle, the negative rating from Bank of America has created worry.

Since the beginning of 2025, Bloom Energy has seen its stock price increase by 186%. However, it is still trading 22.6% lower than its 52-week high of $86.27. Notably, investors who purchased shares five years ago have seen their investments multiply significantly.

Market sentiment is mixed as analysts weigh the company’s past successes against current evaluations. Bloom’s involvement in the AI energy market positions it for future growth, yet its ongoing challenges in profitability raise flags for potential investors.

As analysts continue to monitor Bloom’s financial health and market performance, its future remains uncertain. Investors are left wondering whether current fluctuations present a buying opportunity or if caution is warranted following these critical assessments.