What happenedOn Wednesday, things aren't looking great for investors in the renewable energy sector. That's what's been happening with top hydrogen fuel cell companies Plug Power (NASDAQ:PLUG) and Bloom Energy (NYSE:BE). (0.0%). Bloom Energy’s biggest win is that it has been able to convince some of the biggest names in tech and retail to buy its product. The IPO sold 18 million shares at a high-range price of $15 each, generating $270 million and valuing the firm at more than $2 billion. Bloom press representatives soon walked that back to "Bloom Energy expects to be GAAP-profitable at the operating level, and thus cash-flow positive, this year, not net profitable.". Southern (SO), NextEra Energy (NEE), Entergy (ETR) and FirstEnergy (FE) are also members. It should be noted that Bloom Energy’s Q1 2018 financials are a little unusual compared to the rest of its financial history. Bloom’s customer base includes 25 of the Fortune 100 companies, including AT&T and Home Depot. Our mission is to make clean, reliable, and affordable energy for everyone in the world. Let's conquer your financial goals together...faster. The Bloom Energy S-1 notes: "[W]e believe we can break-even in our service business provided the time between stack replacements across all of our fleet is five years or better.". Plus, neither of these companies has proven they can turn any kind of substantial profit, much less a consistent one. All rights reserved. When did Bloom Energy IPO? But which one is better poised for long-term success? Investors get hopeful only to see new obstacles to success, but when the industry's potential seems to be on the brink of vanishing for good, investor confidence inevitably comes back, seemingly stronger than ever. Speaking of those 312 megawatts. So, yeah, a pretty good quarter, indeed. Bloom Energy stated as of the first quarter of 2018, its top 20 customers accounted for 94 percent of its revenue and only two customers accounted for 70 percent of its total revenue. Renaissance Capital is the global leader in providing pre-IPO institutional Will California’s Ban on Gas Cars Boost America’s Flat EV Market? Further breaking with tradition, the facility doesn’t have uninterruptible power supplies or diesel generators, instead relying on the local utility grid for backup power. Get instant access to more trading ideas, exclusive stock lists and IBD proprietary ratings for only $5. Don't risk buying another IPO without IPO Pro. ... IPO News for Bloom Energy more. The stacks fill a chamber called the hot box. These Alternative Energy, Auto Stocks Soar On Chinese Deals, Nissan Eyes Ethanol In Fuel Cell Race Vs. Toyota, Honda, Continental Resources May Add Rigs If Oil Hits $60; Backs Bakken, Honda Sells Fuel-Cell Car; Plug Power Jumps; FuelCell Sinks, GM Fuel Cell Truck Eyed For Military, Special Ops, 3M, Plug Power Eye 'Hydrogen-Enabled' EV Market, McGraw Hill Financial Leads Latest Acquisition Wave, Stock Futures Up, Gains Fizzling; Fitbit Jumps On Analyst Note. Shares closed at $25 on its first day of trading, and rose to a high of $34 in late September 2018, after news of its $100 million financing deal with KeyBank. As many companies can buy power from utilities that produce power by combusting natural gas, Bloom Energy’s energy doesn’t appear all that much cleaner than what utilities in certain states can offer. That said, Bloom surpassed expectations in Q3 2019, with positive EBITDA and high free cash flow, especially compared to the perennially cash-flow-negative Plug. There are other complications muddying Bloom's outlook as well. Adjusted EBITDA of $21.9 million, excluding stock-based compensation, compared to the first quarter’s EBITDA of $2.1 million. The Sunnyvale, Calif.-based company says it uses proprietary solid oxide fuel-cell technology to "convert fuel into electricity through an electrochemical process without combustion at the highest efficiency of any power solution available in the world today.". Bloom reportedly says the pair's claims lack merit. That’s not a good metric. Bloom Energy’s early fuel cells were clearly pretty inefficient and expensive to operate. Realtime quote and/or trade prices are not sourced from all markets. Shares leapt 66.7% to close at 25.00 on the stock market today. Can the company continue to make progress on its tech and operations fast enough before its spending, losses and growing debt overwhelm it? Plug is working on motile applications: using hydrogen as fuel for vehicles both small (warehouse forklifts) and large (delivery vans and airport safety equipment). Last year, he also received an additional $75,000 in compensation and a stock award. BREAKING: Dow Closes Down, At Session Lows. The Bloom Energy IPO, Tesla And The Shale Technology Revolution Forbes | Jul 25, 2018 Southern Company CEO: Fuel cell technology breaks 100-year old business model Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: Bloom Energy vs. Plug Power @themotleyfool #stocks $PLUG $BE $FDX, Why Plug Power Stock Rose 5% This Morning, Why Bloom Energy Stock Bounced Back 7% This Morning, Why ConocoPhillips, Bloom Energy, and Plug Power Stocks Just Crashed, Why Plug Power, Bloom Energy, and JinkoSolar Stocks Are Sinking Wednesday, Why Plug Power Stock Just Sank Another 4%, Copyright, Trademark and Patent Information. Biden Vs. Trump Poll: Joe Biden Lead Shrinks As Donald Trump Tops 2016 Vote Share, IBD/TIPP Shows, Here Are Some Big Surprises Coming From Tech Stocks. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. 0.00 Bloom’s response stated that the incremental cost for replacing the systems would be covered by future savings. Here are 10 key things to know about Bloom Energy as it seeks to go public on the New York Stock Exchange under the symbol "BE.". 1 in the Booming Solar Loan Market, The First Major Long-Duration Storage Procurement Has Arrived, MIT Validates Science Behind New Nuclear Fusion Reactor Design, I Fully Converted a Home to Electricity. The resulting benefit of the renewal of the ITC was recognized in the first quarter of this year. The company also has made some progress lowering its sizable losses and reducing its costs to build and maintain its fuel cells. That said, there are plenty of safer and more reliable bets elsewhere in the energy sector. Related: Equinix Makes Big Bet on Fuel Cell-Powered Data Centers. Bloom’s recent S-1 made clear that it “will incur net losses on a GAAP basis for the foreseeable future.”. Image source: Getty Images. of the global IPO market and bottom up research and valuation analysis on every IPO. Free intelligence and insights from industry experts and leading companies on the global energy transformation. Fuel cell builder Bloom Energy rang the opening bell on the New York Stock Exchange and celebrated its initial public offering this week, an event more than 15 years in the making. It consistently loses money, but it's addressing the red ink. Just counting the annual fees, he’s been paid more than $1 million for his services at Bloom Energy. Find out how actively traded CEFs tend to be more nimble because of their size. Bloom has gotten help covering its … when they were newly public. Bloom had been one of Silicon Valley’s last-standing energy “unicorns,” having raised $1.5 billion in investment with $950 million in debt prior to its IPO in July 2018. The Bloom Energy Server converts standard low-pressure natural gas into electricity through an electrochemical process without combustion, resulting in very high conversion efficiencies and lower harmful emissions than conventional fossil fuel generation. Because of this problem, Bloom Energy started a program to try to decommission those early fuel cells. That combination sent the company's shares tumbling by more than 40 percent on Tuesday, falling to $4.75 in midday trading, the lowest point since Bloom's IPO last year. Renaissance Capital Investments, Inc. is a FINRA-registered broker-dealer, and member of SIPC. Executives note in the S-1 that Bloom Energy drew down on $12 million of that grant, but that it’s only created 277 jobs. Stock Advisor launched in February of 2002. Data Center Knowledge is part of the Informa Tech Division of Informa PLC. Get 2 months of IBD Digital + Print for only $10.31. They threatened legal action against Bloom in 2013, pointing fingers at the company for allegedly misleading them and prompting the SEC sanctions, according to the outlet, citing people familiar with the matter. Bloom's shareholder letter noted that more than 200 water electrolysis projects have come online since 2000. The Bloom Energy IPO adds another member to IBD's Utility-Electric Power industry group, which ranks 97 out of the 197 groups that IBD tracks. In its IPO prospectus, the Sunnyvale, California-based company, whose board members include former US Secretary of State Colin Powell, former Republican Senator Kelly Ayotte, and former Cisco CEO John Chambers, revealed for the first time its annual revenue and future market growth expectations. What has become a trend for the company is increasing revenue and paying down long-term debt: BE Total Long Term Debt (Quarterly) data by YCharts. On July 25, 2018, the day of Bloom’s IPO, Sridhar falsely told MarketWatch reporters that the company was profitable as of the second quarter. As of the end of March, the company has accumulated a deficit of $2.3 billion. Bloom’s current, modest cash supply is even more disturbing: $88.2 million in cash and cash equivalents. On the biogas front, in the first quarter, Bloom powered up a 50-kilowatt landfill biogas-fed fuel cell in a pilot project with Southern Company. In its IPO prospectus, the Sunnyvale, … The Chicago-based investment firm raised money for the clean-energy company and was in 2012 charged by the SEC with "misleading investors in private equity offerings.". It cites that as a risk (on page 40 of the S-1) and stated: "We may not be able to generate sufficient cash to meet our debt service obligations.". Bloom Energy has recorded modest and slow-growing revenue and consistent losses over its lifetime. It also has demonstrated clear progress in its ability to reduce the costs and boost the efficiency of its fuel cells in recent years. Hydrogen fuel cells have been an underperforming part of the renewable energy industry. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. See you at the top! More than 100 Bloom systems within 100 miles of a July 7.5 magnitude earthquake in Northridge, Calif. continued to operate during and after the temblor, Sridhar said.

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