Wall Street did not seem to be getting enough from Bloom Energy Corp. on Wednesday. to get. Shares rose 50% after chief executive and founder K.R. Sridhar owed his company's ability to explain its purpose.
Investors "understood very clearly what the size of the market is, they understood what the opportunity is," Sridhar told MarketWatch in a telephone interview.
Other solutions to increasing global energy demand are "band aids" that are not as reliable, resistant to current fluctuations or so sustainable, he said.
Sridhar further said that Bloom Energy
BE, + 50.27%
will be sustainably positive and GAAP-profitable this year. The company is already profitable from the second quarter, he said.
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Bloom's end of Tuesday praised its IPO and sold 18 Millions of shares are priced at $ 15, the top of a $ 13- $ 15 range in early July to raise $ 270 million. On the New York Stock Exchange, stocks rallied 30% on Wednesday at noon and outperformed them as the stock market closed.
Bloom Energy produces solid oxide fuel cells that are only half the size of a typical shipping container in stationary power generation servers. The servers, which are placed at customer sites, convert natural gas or biogas into electricity through electrochemical reactions that lead to lower emissions than conventional power generation.
In a vote of confidence, nearly a third of the shares reserved for Bloom Energy board members and employees and family members were alone, Sridhar said. The Blooming supporters included venture capitalists such as Kleiner Perkins Caufield & Byers and New Enterprise Associates
"We had to restrict ourselves," said the CEO. It was very positive that board members and employees did not see the IPO as an exit strategy, but wanted more, he said.
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Sridhar said Bloom "was constantly scanning for opportunities in other markets," having recently arrived in South Korea and been present in India and Japan ,
Sridhar was encouraged to make acquisitions across the board and said the current business climate, with concerns about trade wars and tariffs that weigh on commodity prices, is regrettable but not a stumbling block to Bloom.
"We have multiple suppliers in several countries, including the US," he said. "It's not a big deal for us."