Bloom Energy Soars 47.8% on Major Utility Contract News

Bloom Energy shares jumped 47.8% after announcing a significant deal with American Electric Power to supply fuel cells, a potential game-changer for the company's profitability following a lackluster earnings report last week.

Date: 15-11-2024

AI Rating: 7

Bloom Energy has experienced a dramatic stock surge of 47.8%, attributed to a major contract announcement with American Electric Power. This deal will involve supplying 1 gigawatt of fuel cells, significantly larger than a recent contract for an 80-megawatt system in South Korea.

The implications of this agreement are substantial, as it represents approximately 77% of the cumulative volume of fuel cells that Bloom has deployed historically. While no exact revenue numbers were disclosed, estimates suggested this deal could generate revenues exceeding $7 billion, which would be a significant boost for Bloom Energy's financial outlook.

Moreover, the report highlights that Bloom has achieved gross profit margins of nearly 24% in Q3, indicating potential for further improvement in operating and net profit margins. This achievement is crucial as the company strives for profitability, and the new deal could potentially be the catalyst needed for Bloom to finally turn a profit.

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