Bloom Energy (NYSE:BE) experienced significant volatility, with shares dropping 11.8% after Jefferies downgraded the stock to 'Underperform,' citing high valuation concerns and limited visibility into long-term growth. Analysts noted early signs of over-exuberance, despite raising the price target to $31, still well below the current trading price of around $66.75, indicating potential downside. The stock had previously fallen 8% after BofA Securities maintained an 'Underperform' rating with a higher target of $24, suggesting a predicted 70% decline from current levels. Despite a 186% increase since the start of the year, Bloom remains 22.6% below its 52-week high of $86.27. The company’s high valuation—trading at over 852 times earnings with minimal profit—raises questions about its profitability and future growth prospects. Meanwhile, Morgan Stanley has recently raised its outlook, pushing the stock to a record high, reflecting a stronger market confidence in Bloom's potential, especially in supporting AI data centers. Overall, the stock's recent sharp declines and analyst warnings highlight the risks of overvaluation, but it continues to attract investor attention due to its thematic growth potential in green energy and AI infrastructure.