What Happened?
A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East sent crude oil prices soaring, stoking fears of resurgent inflation.
The price for Brent crude, the international benchmark, leaped over 6% to $82.57 a barrel amid an escalating war with Iran, which has threatened to block the Strait of Hormuz. This critical waterway handles about 20% of global oil flow. A sustained increase in energy prices could translate to higher inflation, potentially impacting consumer spending and corporate earnings. This scenario also complicates the Federal Reserve's path forward, as persistent inflation could delay anticipated interest rate cuts that investors have been counting on to support the economy.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Aerospace company Woodward (NASDAQ: WWD) fell 4.2%. Is now the time to buy Woodward? Access our full analysis report here, it’s free.
- Aerospace company Astronics (NASDAQ: ATRO) fell 6.6%. Is now the time to buy Astronics? Access our full analysis report here, it’s free.
- Renewable Energy company Bloom Energy (NYSE: BE) fell 6.7%. Is now the time to buy Bloom Energy? Access our full analysis report here, it’s free.
- Renewable Energy company Sunrun (NASDAQ: RUN) fell 6.7%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Autoliv (NYSE: ALV) fell 4.3%. Is now the time to buy Autoliv? Access our full analysis report here, it’s free.
Zooming In On Bloom Energy (BE)
Bloom Energy’s shares are extremely volatile and have had 85 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 7.3% on the news that the stock's positive momentum continued as the company posted strong fourth-quarter results and provided an optimistic revenue forecast for 2026, driven by surging demand from the artificial intelligence (AI) sector. Bloom Energy reported fourth-quarter revenue of about $778 million and a non-GAAP operating income of roughly $133 million, beating analyst estimates by 19% and 39%, respectively. Looking ahead, the company issued a robust revenue outlook for 2026. Management noted that AI was a significant catalyst for growth, with AI computer racks consuming nearly 100 times more power than their predecessors. This demand was reflected in the company's product backlog, which surged 140% year over year to $6 billion. Following the strong report, BTIG raised its price target on the stock to $165 from $145.
Bloom Energy is up 56.2% since the beginning of the year, but at $154.12 per share, it is still trading 11.8% below its 52-week high of $174.77 from February 2026. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $5,792.
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