GE Vernova and Bloom Energy shares plunged Tuesday after SoftBank Group disclosed a $3.7 billion charge tied to power equipment procurement. We asked whether this write-down, cancellation, or "revised procurement strategy" in the AI spending boom could signal trouble ahead in a note titled "Masa's $3.7 Billion Bonfire: SoftBank Posts $7 Billion Loss After Torching Deposits On AI Power Gear As Interest Costs Double."
SoftBank's disclosure followed Elon Musk's claim last week on X that Masayoshi Son's investment group was "defaulting on their turbine orders," an allegation SoftBank denied.
For GE Vernova, however, the cancellation scare runs into a massive backlog. The company had 122 gigawatts of orders at the end of the third quarter, is targeting at least 130 gigawatts by year-end and is booking projects through 2031.
GE Vernova and Bloom Energy are under pressure as traders price in the risk that SoftBank's procurement woes could signal a bigger retreat and/or spread ...
UBS industrials and materials sector specialist Allyson Gordon addressed SoftBank woes and the selling pressure on GE Vernova and related stocks in a note:
GE Vernova is under pressure after SoftBank
