Bloom Energy (BE) Stock Drops 15% After Oracle and OpenAI Cancel Texas AI Data Center

TLDR

• Bloom Energy (BE) fell 15.5% after Oracle and OpenAI scrapped plans for an AI data center expansion in Texas
• The news hit investor sentiment hard, with the sell-off occurring in the afternoon trading session
• BE had gained 11.83% over the prior month before the drop
• The company trades at a steep Forward P/E of 119.41 vs. an industry average of 18.47
• Analysts currently rate BE a Hold, with Q1 earnings expected to show 200% year-over-year EPS growth

Bloom Energy’s stock took a sharp hit on March 6, 2026, falling 15.5% after Bloomberg reported that Oracle and OpenAI have decided not to move forward with their planned AI data center expansion in Texas. The news rattled investors who had been banking on data center demand as a key growth driver for the fuel cell company.

Bloom Energy Corporation, BE

The drop came after a strong run. BE had climbed 11.83% over the prior month, well ahead of both the Oils-Energy sector gain of 7.17% and the S&P 500’s slight decline of 0.15%.

The sell-off was concentrated in the afternoon session, suggesting the Bloomberg report landed during market hours and triggered a quick reaction from investors.

Before the news broke, Bloom Energy had been riding a wave of optimism tied to surging AI infrastructure demand. Data centers are power-hungry, and fuel cell systems like those BE makes had been seen as a potential fit for that market.

Oracle and OpenAI’s decision to pump the brakes on the Texas project removed a key piece of that narrative, at least in the short term.

Earnings Picture Remains Strong

Despite the stock move, Bloom Energy’s upcoming earnings still look solid on paper. The company is expected to report Q1 earnings of $0.09 per share, which would mark 200% year-over-year growth.

Revenue consensus sits at $498.11 million for the quarter, up 52.79% from the same period last year. For the full fiscal year, analysts expect earnings of $1.38 per share on revenue of $3.25 billion.

The Zacks Consensus EPS estimate has moved 106.32% higher over the past month, which is a meaningful upward revision. Bloom Energy currently holds a Zacks Rank of #3, or Hold.

Valuation Remains a Concern

Even after the drop, Bloom Energy’s valuation is stretched. The stock trades at a Forward P/E of 119.41, compared to its industry average of 18.47. Its PEG ratio sits at 4.78, versus the Alternative Energy sector average of 1.97.

The P/S ratio of 17.12 is near its 10-year high. GF Value pegs the stock at $23.95, flagging it as significantly overvalued at current levels.

Institutional ownership is high at 84.63%, while insiders have been selling — 268,788 shares moved in the past three months.

On the balance sheet, the company shows a current ratio of 5.98 and a quick ratio of 4.95, pointing to solid liquidity. The debt-to-equity ratio of 3.89 is elevated but the Altman Z-Score of 6.88 suggests the underlying business is financially healthy.

BE’s beta of 5.34 reflects the stock’s tendency to move sharply — Thursday’s 15.5% decline is consistent with that profile.

The stock closed the prior session at $159.99 before the data center news sent it lower on March 6.

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