Bloom Energy Loses 9.9% On Lost Opportunity

A Bloom Energy power generation system. Photo from Bloom Energy website

Bloom Energy fell by 9.94% on Friday to close at $150.12 apiece, as investors parked funds to mitigate risks from global uncertainties while digesting a lost opportunity from a recently scrapped data center expansion between one of the company's customers and OpenAI.

Bloom Energy Corp. declined alongside the broader market, with Wall Street’s three major indices all slashing 1% to 2% of their value during the session. The drop was primarily triggered by President Donald Trump’s announcement that he was not interested in a ceasefire with Iran.

Tensions aside, sentiment for Bloom Energy Corp. was also dampened by earlier news that one of its customers, Oracle Corp., and OpenAI had scrapped a plan to expand their AI data center in Abilene, Texas, after failing to agree on financing terms and changing capacity projections.

Investors, however, are on the lookout for more concrete developments amid reports that Facebook operator, Meta Platforms Inc., is setting its sights on the yet-to-be-expanded space following the botched deal.

Bloom Energy Corp., in July of last year, had partnered with Oracle to deploy power capacity to the latter’s select data centers in the US.