Bloom Energy Stock Is Falling, But Don’t Buy The Dip Yet

Bloom Energy Stock Is Falling, But Don’t Buy The Dip Yet

Bloom Energy stock (NYSE: BE), a company that sells solid oxide fuel cell generators, has declined by almost 12% over the last week, considerably underperforming the S&P 500 which remains down by about 2% over the same period. The stock is also down by almost 24% over the last month. Hydrogen stocks at large have underperformed recently due to the stalling of negotiations on President Biden's Build Back Better plan, which had proposed to provide tax credits for hydrogen production. Separately, the company's Q3 results, published in November, also fell short of market estimates. Besides this, high-growth, high multiple stocks, in general, have also been weighed down by the prospect of rising interest rates through 2022. Given that BE stock is down 24% over the last month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of a decline in BE stock over the next month. Out of 139 instances in the last three years that BE stock saw a twenty-one-day fall of 24% or more, 49 of them resulted in BE stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 49 out of