Wey How
Thematic Position Trader, Technology Stocks & Trend Following
Quarterly rebalancing and the Russell 2000 reconstitution have dislocated a few good names, creating chances to buy or add. Bloom Energy, Credo Technology and TTM Technologies have been wearing the wrong jersey in the small-cap index after their huge runs. Amkor Technology retested its breakout pivot, and Tower Semiconductor is back at its 50-day moving average and PEG area. x.comÂ
Bloom Energy's third beat-and-raise this year makes its selloff look driven by market fear rather than deteriorating business results. A similar sentiment-driven decline after strong results in July marked a bottom before the stock doubled; the setup looks similar now. x.comÂ
Bloom Energy looks more appealing after beating earnings estimates by a wide margin while trading at about 55 times earnings near $200. The market paid $350 in June, but the company now earns far more than expected despite a 33% share-price drawdown. x.comÂ
Bloom Energy is a flows story masquerading as fundamentals, and the Russell rebalance is an identifiable catalyst within a month. At about 4% of the Russell, it faces heavy selling when it gets kicked out of the small-cap index. Its roughly $100 billion valuation needs a $30 billion revenue run rate, which won't happen, and it will trade with a group seeing peak order growth while the AI trade looks over for a while. x.com x.com x.com x.com x.com x.com x.com x.comÂ
An early AI buildout, healthcare data, tokenized finance and copper's clearest supply-demand imbalance favor a 15-stock growth basket now. Marvell, Applied Optoelectronics, Nebius, Eli Lilly, Tempus, Ouster, Regal Rexnord, Bloom Energy, Fluence, SpaceX, Brazil's EWZ ETF, Nu Holdings, Coinbase, Securitize and the COPX copper-miners ETF are the picks. Keep Fluence smaller; SpaceX stays bullish long term despite rejecting $500B-$1T ARR in 2027. x.comÂ
Bloom Energy is attractive because it is newly profitable and sales are doubling year over year; its stock is building a base-on-base recovery uptrend below the June all-time high. x.comÂ
Bloom Energy is probably already priced for perfection after running up like crazy, and it will likely keep trending down now that market sentiment has shifted. x.comÂ
Bloom Energy's repeated revenue and EBITDA beats suggest its pullback will give way to another run soon. It raised 2026 guidance for the third time. Morgan Stanley raised its target to $335 and says Bloom targets revenue growth well above 100%, with backlog growing faster than sales and a path to more than 5 GW of capacity. x.comÂ
Bloom Energy's latest results confirmed the bullish case with a double beat. EPS grew 90% and revenue 29%. x.com x.comÂ
Bloom Energy is a great business priced as if it can't miss, at roughly 22x sales, so it now has to grow into its multiple. Per @StockSavvyShay, product revenue more than tripled in a year as Bloom's fuel cells deploy onsite in months versus nearly five years for grid interconnection. But crushing earnings and growing into a multiple are two very different problems, and the stock had already nearly halved from its June high going into the report. x.comÂ
Bloom Energy ranks fourth-highest on sell flows in the index rebalance, so buying some now could pay off next week once that selling passes. x.comÂ
