FuelCell Energy: A Day Late And A Dollar Short - Sell
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Henrik AlexInvesting GroupFollow5ShareSavePlay(9min)CommentsSummaryFuelCell Energy, Inc., reported better-than-expected Q4 FY2025 results, with both the company's top and bottom lines coming in ahead of consensus estimates.However, gross margins remained in negative territory, and FCEL continued to burn substantial amounts of cash.Aggressive common shareholder dilution continued, with outstanding FCEL shares increasing by more than 50% on a quarter-over-quarter basis.While FCEL management continues to tout the company's AI data center opportunity, much larger competitor Bloom Energy offers a vastly superior solution.Given limited prospects for successfully competing with Bloom Energy in the AI data center space and persistent common shareholder dilution, I am reiterating my sell rating on FCEL common shares.
Getty Images Note: I have covered FuelCell Energy, Inc. or "FuelCell Energy" (FCEL) previously, so investors should consider this article an update to my earlier work on the company. On Thursday, FuelCell Energy reported better-than-expected Q4/FY2025 results, with both theThis article was written byHenrik Alex20.75K FollowersFollowI am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.