Bloom Energy Surges 10.1% on FuelCell Earnings Spark—Is This the Dawn of a New Energy Era?

Summary
• Bloom Energy (BE) rockets 10.07% intraday to $88.29, hitting a high of $90.30
• FuelCell Energy’s 34% earnings beat and 12% revenue growth ignite sector optimism
• Daiwa initiates coverage with a ‘Hold’ at $98, while consensus targets $113.32

Bloom Energy’s 10.1% surge on December 19, 2025, has electrified the renewable energy sector. The stock’s dramatic rebound from a $81.3 intraday low to $90.30 high underscores a pivotal shift in investor sentiment. With FuelCell Energy’s earnings outperformance and Oracle’s AI data center collaboration fueling momentum, BE’s rally reflects a broader re-rating of clean energy infrastructure. Traders are now parsing technicals and options activity to gauge if this is a short-term rebound or a structural inflection.

FuelCell Earnings and AI Data Center Hype Ignite BE’s Surge
Bloom Energy’s 10.1% intraday surge is directly tied to FuelCell Energy’s (FCEL) 34% earnings beat and 12% revenue growth, which signaled improving fundamentals in the fuel cell sector. FCEL’s Q4 results highlighted accelerating demand for data center power solutions, a core growth driver for BE. Additionally, Oracle’s AI data center collaboration and Brookfield’s $5B project partnership reinforced investor confidence. While broader AI stocks faltered, BE’s rally reflects optimism about its scalable power solutions for high-growth data center demand. The stock’s proximity to Bollinger upper band ($122.46) and oversold RSI (34.94) further fueled short-term buying.

Renewable Energy Sector at Inflection Point as BE Outperforms Peers
The renewable energy sector is diverging between AI-linked selloffs and fuel cell optimism. While FCEL’s 11.7% post-earnings decline highlights skepticism about its profitability, BE’s rally underscores confidence in its data center partnerships and operational scalability. The sector’s mixed performance reflects a critical inflection: companies with proven revenue streams (BE) are outperforming peers still refining business models (FCEL). This divergence suggests investors are prioritizing execution over speculative growth in the sector’s next phase.

Options and ETFs to Capitalize on BE’s Volatility
• 200-day MA: $52.99 (far below current price)
• RSI: 34.94 (oversold)
• MACD: -6.31 (bearish), Signal Line: -3.19 (bearish)
• Bollinger Bands: Upper $122.46, Middle $99.41, Lower $76.36 (current price near upper band)

Bloom Energy’s technicals suggest a short-term rebound from oversold RSI levels, but bearish MACD and 200-day MA divergence caution against over-optimism. Key resistance lies at $99.41 (middle Bollinger Band) and $122.46 (upper band). Aggressive bulls should consider BE20251226C85 into a break above $99.41. For downside protection, BE20251226P89 offers moderate leverage and liquidity if the rally falters.

BE20251226C85 (Call, $85 strike, 12/26 expiry):
• IV: 89.75% (high)
• Delta: 0.63 (moderate sensitivity)
• Theta: -0.5296 (rapid time decay)
• Gamma: 0.0322 (high sensitivity to price swings)
• Turnover: 181,027 (liquid)
• LVR: 13.97% (moderate leverage)
• Payoff (5% upside): $4.43/share
This contract offers high gamma and liquidity, ideal for capitalizing on a breakout above $99.41.

BE20251226P89 (Put, $89 strike, 12/26 expiry):
• IV: 96.58% (high)
• Delta: -0.4995 (moderate downside protection)
• Theta: -0.0591 (slow decay)
• Gamma: 0.0317 (high sensitivity)
• Turnover: 12,700 (liquid)
• LVR: 16.01% (moderate leverage)
• Payoff (5% upside): $0.00/share (neutral)
This put offers downside protection if the rally falters, with high gamma to benefit from volatility.

Aggressive bulls should consider BE20251226C85 into a break above $99.41.

Backtest Bloom Energy Stock Performance
The backtest of a strategy that involves a 10% intraday surge from 2022 to the present has shown poor performance. The strategy's CAGR is 3.40%, with an excess return of -34.09% and a Sharpe ratio of 0.17. The maximum drawdown was 0%, indicating that the strategy has not experienced any significant losses during the backtest period.

Act on Key Levels as BE Faces Critical Juncture
Bloom Energy’s 10.1% surge reflects a fragile balance between sector optimism and AI-driven selloffs. While technicals suggest a short-term rebound, the bearish MACD and 200-day MA divergence warn of potential mean reversion. Traders should monitor the $99.41 (middle Bollinger Band) and $122.46 (upper band) levels, with the 30-day support/resistance range of $108.1–$109.34 acting as a critical filter. Meanwhile, FuelCell Energy’s 11.7% decline highlights sector fragility. Watch for a $99.41 breakout or a breakdown below $76.36 (lower Bollinger Band) to dictate next steps. Sector leader FCEL’s -14.37% intraday drop underscores the need for caution. Act now: Position for a $99.41 breakout or secure downside protection with BE20251226P89.