Oracle (ORCL) and Bloom Energy (BE) stocks fell in Monday morning trade after New Mexico rejected a natural gas pipeline application critical to Oracle's Project Jupiter data center. BE's stock dropped more than 7%, while ORCL's shares fell 3.5%, trading at their lowest level since April 2025. The rejection affects a pipeline that would supply power for up to 2.5 gigawatts of Bloom Energy fuel cells planned for the site. According to VanEck analyst Matthew Sigel, the setback raises risks that Oracle could miss its targeted August 15 timeline for key power infrastructure. The pipeline application was submitted by Energy Transfer for a roughly 0.6-mile stretch across state trust land as part of a larger 17-mile natural gas pipeline project.
New Mexico Land Commissioner Rejects Pipeline Application for Second Time
New Mexico Land Commissioner Stephanie Garcia Richard rejected Energy Transfer's request to build a roughly 0.6-mile stretch of pipeline across state trust land. Garcia Richard stated that approving the request wasn't in the best interest of the state trust, citing concerns over greenhouse gas emissions and the project's impact on New Mexico's water supply. She first denied the request in March. The proposed pipeline stretch is part of a larger 17-mile natural gas pipeline meant to supply power to Oracle's Project Jupiter data center site.
Stock Performance and Trading Activity
ORCL and BE were among the top trending tickers on Stocktwits, with message volume more than doubling for both stocks over the past 24 hours. Platform data showed that message volume nearly doubled around ORCL's stock in the last 24 hours, and chatter around BE's stock surged by more than 150%. ORCL's stock has fallen nearly 40% this year, while BE's stock has more than doubled its share price. Oracle was initiated with a 'Hold' rating at CLSA on Friday. TD Cowen flagged risks stemming from delays in Oracle's flagship projects and maintains a 'Hold' rating on the stock with a price target of $235.
Retail Sentiment on Stocktwits
On Stocktwits, retail sentiment around Oracle remained in 'extremely bullish' territory over the past day, while sentiment around Bloom Energy trended in 'bullish' territory. Retail traders on the platform acknowledged the risk around building data centers and the corresponding delays. The latest setback raises the risk that Oracle could miss its targeted August 15 timeline for key power infrastructure, and construction could slip into next year according to analyst commentary.
FAQ
Why did Oracle and Bloom Energy stocks fall on Monday?
The stocks fell after New Mexico rejected a natural gas pipeline application for the second time. The pipeline would supply power for up to 2.5 gigawatts of Bloom Energy fuel cells planned for Oracle's Project Jupiter data center.
What reasons did New Mexico give for rejecting the pipeline application?
Land Commissioner Stephanie Garcia Richard stated that approving the request wasn't in the best interest of the state trust, citing concerns over greenhouse gas emissions and the project's impact on New Mexico's water supply.
How much have Oracle and Bloom Energy stocks moved this year?
ORCL's stock has fallen nearly 40% this year, while BE's stock has more than doubled its share price.
