Is Bloom Energy Stock a Millionaire Maker?

Bloom Energy (NYSE: BE), to put it bluntly, won't make most investors millionaires on its own.

That's not to say Bloom won't make investors rich. In fact, I think Bloom could deliver substantial gains over the next several years.

In essence, Bloom manufactures fuel cells that generate electricity without combustion. These systems are especially attractive to data centers, whose enormous electricity needs are overwhelming local grids.

Thanks to data center growth, Bloom's business is booming. In the second quarter, it generated over $1 billion in revenue, its first time surpassing $1 billion in a quarter. Its operating expenses grew more slowly than revenue, which helped it earn a profit.

Revenue is expected to explode over the next three years, as the chart suggests.

Data by YCharts

So why won't Bloom stock mint new millionaires? The problem is its valuation. With a market cap of nearly $83 billion, Bloom already trades at about 20-21 times its expected 2026 revenue. That's a hefty premium for an energy company that, despite its growth, still faces uncertainty.

Doing some back-of-the-envelope math, a $10,000 investment in Bloom today would need a 100-fold gain to reach $1 million. At today's valuation, that would make Bloom an $8 trillion company, larger than any other company by today's standards.

Still, with power needs exceeding capacity, Bloom has a promising business with an enormous opportunity ahead. Investors could still see a sizable gain from the stock, but I wouldn't count on it alone to make you a millionaire.

Steven Porrello has positions in Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.