Bloom Energy is making history in the hydrogen space as the company marked a remarkable order deal with the subsidiary of the South Korean Group, SK Ecoplant. Bloom Energy stock skyrocketed 45% since the announcement of the deal on Monday, October 25th as SK Ecoplant agreed to purchase at least 500 megawatts of power from Bloom through 2024.
That is a $4.5 billion revenue commitment from SK. The Bloom Energy stock has now reached highs not seen since June and is likely heading towards the all-time peak of around $45.
The deal also includes an equity investment from SK to Bloom of about $500 million and the company will add a member to Bloom’s Energy board. Furthermore, the two partners will create hydrogen innovation centers in the United States and South Korea.
The significant revenue boost for Bloom from that deal is attracting investors’ attention. Some analysts are projecting an additional $300 million of revenue per year throughout the next few years on top of previous projections for the company.
Up until now, Bloom has always been losing money during its 20 years of existence, however, the latest deal with SK Ecoplant is making investors hopeful it would finally turn profitable. That continues to drive the stock higher during this week and there are no indications yet it is slowing down soon.
Bloom Energy Stock Forecast
On the technical side, Bloom Energy stock price today seems poised to further highs. It succeeded to break critical resistance $26.40 of a trendline that started March 2020. Another breakout, this time of $27.50 would signal bulls are strong enough to target an all-time high at $45.
The Bloom Energy stock news is a bullish signal for the whole hydrogen economy. Partnerships of this magnitude are a sign the industry is growing and that would benefit the other hydrogen companies looking to expand in the US and internationally.