Bloom Energy's rapid data center power capability drives growth, but high valuation metrics warrant investment caution.

The reason that Bloom Energy has become the huge winner that it's been over the past year or two for investors is because they can power up these data centers extremely quickly.

And the irony here is Bloom Energy's basically pitch to investors even during the pandemic was this was going to be a green energy company. We were going to be able to make hydrogen through electrolysis.

We were going to be able to turn that hydrogen into power very easily and cost effectively with Bloom Energy fuel cells. Now that's all kind of off the table and we're going back to the way that Bloom Energy has always run and that was actually operating with natural gas as the fuel source.

It's a fuel cell that it can take in multiple pieces, multiple different types of fuel stock, but natural gas is the most readily available today. So, that's what a lot of these fuel cells are doing.

But the growth here is absolutely phenomenal. And at the very least, this is one of these band-aids that's going to be that's going to last for a while because these companies need as much power as possible. They need as close to the source as possible.

Something like a Bloom Energy power system, even in a small form that isn't powering your entire data center, can be a really big value ad for those data centers today.

Listen, the best time to secure your power was yesterday. The second best time is 90 days or less. And that's really Bloom Energy's story right there and why it can win so much business.

It can get you powered on faster than a lot of companies out there. And so in this age where we're all competing over the same limited energy sources, Bloom Energy does provide a value proposition to its customers.

Now, all of this said, this is an incredibly expensive stock today because it is now an 80 billion market cap as we're recording today. Enterprise value to sales is about 26. Price earnings multiple even on a forward basis if we're being generous is about 78.

So from an investment perspective, this is one of those companies that maybe want to be cautious with that valuation. But at the very least, Bloom Energy is going to give you an idea of what that energy demand looks like, where it's going, and you know, how it's going to play into building these data centers that are going up extremely quickly.