Why Bloom Energy's Stock Plunged 21% in September
After heating up in August -- a month in which they soared 26% -- shares of Bloom Energy (NYSE: BE) cooled off in September. While the S&P 500 sank more than 9% last month, Bloom Energy's stock plummeted 21.3%, according to data from S&P Global Market Intelligence.
In addition to the distance that investors looked to keep, in general, from growth stocks like Bloom Energy, the trimming of insiders' positions contributed to the stock's fall last month.
Looking to tamper rising inflation, the Federal Reserve has resorted to repeatedly raising the interest rate. That action led many investors to turn their backs on speculative investments like Bloom Energy in September. Although the company has steadily grown revenue -- increasing it at a compound annual growth rate of 28% since 2017 -- it has failed to achieve breakeven on the basis of earnings before interest, taxes, depreciation, and amortization (EBITDA).
Source Fool.com
