Bloom Energy joined the S&P 500 on Sept. 21 while trading at nearly 400 times trailing earnings, and by Oct. 23 its shares had fallen 29% but still traded at 120 times trailing earnings versus 26 times for the S&P 500. Citing research, the article notes that new index additions have tended to lag: six months after joining, 45 additions from 2017 to 2020 trailed the index by an average of 2.1 percentage points (median 5.9), and a February 2026 study found S&P 500 additions underperformed similar non-index companies by 28% after one year and 55.2% after five years. High P/E glamour stocks have also historically lagged the market by around 3% to 4% per year. Bloom reported record third-quarter revenue of $1.2 billion, up 138%, and diluted EPS of $0.78 versus negative $0.10 a year earlier, driven by data center power demand. The author describes the stock as a risky investment right now given its recent index inclusion and premium valuation.
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Bloom Energy (BE) joined the S&P 500 on Sept. 21, 2026, after rallying 1,880% over two years alongside rising profits. The article argues the inclusion marks its shift from a niche green energy company to a high-growth AI infrastructure stock, and notes it met the index's requirement of four consecutive quarters of GAAP profitability. Passive index funds and ETFs will automatically hold the stock, which may lift trading volume, as Palantir (PLTR) rallied nearly 400% after its September 2024 inclusion. From 2023 to 2025, Bloom's revenue and adjusted EBITDA grew at CAGRs of 23% and 82%, its backlog reached $20 billion at end-2025, and analysts expect CAGRs of 72% and 126% for 2025–2028. With an enterprise value of $66 billion, the stock trades at 34 times next year's adjusted EBITDA, and the author sees room for further upside.
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