What Happened?
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE: BE) fell 3.3% in the afternoon session after its Chairman and CEO, Sridhar KR, sold over $13 million worth of company shares.
According to SEC filings, the transactions occurred between August 25 and August 29. Insider selling by top executives can often unnerve investors, as it can be interpreted as a potential lack of confidence in the company's near-term stock performance. The timing of the sale is particularly notable, as Bloom Energy's stock has surged over 340% in the past year and is trading near its 52-week high. This significant appreciation in share price may have prompted the executive to cash in on some of the gains, a move that some analysts suggest could indicate the stock is currently overvalued.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Bloom Energy? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Bloom Energy’s shares are extremely volatile and have had 63 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 2.4% on the news that the stock appeared to be taking a breather as a strong rally left it in technically overbought territory. The stock had been rising for seven consecutive days, a run-up that pushed its Relative Strength Index (RSI), a key momentum indicator, to a level considered "extremely overbought." This condition can often precede a pullback as investors decide to sell and lock in recent gains.
Bloom Energy is up 119% since the beginning of the year, and at $51.14 per share, it is trading close to its 52-week high of $54.80 from August 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $3,103.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
