AI Enabler Blossoms, Wilts Then Retreats In Thorny Market. What's An Investor To Do?

News of “productive” talks between the U.S. and Iran lifted the stock market indexes Monday. Bloom Energy (BE), which started the session exploring a volatile buy zone, soon retreated below its 50-day moving average despite an initial jump on the news.

The attempted rebound came as shares continued to seesaw in and out of buy range since clearing a 147.86 buy point on Jan. 16. Bloom Energy’s high average true range, or ATR, of 9.71% reflects that volatility, reminding investors to keep risk management top of mind.

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						Hundreds Of Billions In AI Investments Now Sit In A War Zone. What Happens Next?

Bloom Energy Stock On Leaderboard Watchlist

Based in the heart of Silicon Valley in San Jose, Calif., Bloom Energy focuses on renewables in supplying electricity to residential and commercial customers. But artificial intelligence has emerged as the main driver of growth for the company, helping lift it onto the Investor’s Business Daily Leaderboard watchlist.

Bloom Energy has pivoted to focus on providing power to meet the ravenous demands of AI data centers. The company uses solid oxide fuel cell technology to deliver so-called on-site power to supplement demands on the centralized grid.

Over the last five quarters, Bloom Energy has generated sales growth ranging from 19% to 60%. In the fourth quarter, revenue rose 36% to $777.7 million.

The company has also fueled a sharp turnaround in bottom-line growth. After producing its first-ever annual profit in 2024, Bloom Energy posted a profit of 64 cents per share in 2025, marking a spike of 129%. Wall Street thinks earnings will surge 102% in 2026 before accelerating to 118% growth in 2027.

How To Handle Changing Stock Market Trends

Bloom Retreats In Not Exactly Rosy Market

Bouncing back once again on Monday, Bloom Energy briefly held its ground within a 147.86-155.25 buy zone. That came after shares fell more than 8% below the initial buy point, further highlighting the stock’s volatility. Even before Monday’s eventual decline, such action reminded investors to heed rules for how to buy stocks and when to sell.

While Monday’s rise on the Nasdaq composite and S&P 500 showed potential promise, plenty of work still needs to get done before a follow-through day could emerge to signal a change in trend. But both indexes remain below their 200-day moving averages.

Particularly in such a news-driven environment, head fakes and overreactions — in either direction — are common. The multiple false starts in Bloom Energy keep proving that point.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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