Is FLNC a good stock to buy? We came across a bullish thesis on Fluence Energy, Inc. on The Mispricing Desk’s Substack. In this article, we will summarize the bulls’ thesis on FLNC. Fluence Energy, Inc.’s share was trading at $24.07 as of June 8th. FLNC’s forward P/E was 95.24 according to Yahoo Finance.
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Fluence Energy is a leading global energy storage and grid-scale software and hardware provider positioned at the center of accelerating demand from utilities and hyperscalers, yet the market continues to price it through a policy and working-capital risk lens despite increasingly strong evidence of demand inflection. The core mispricing sits in a record $5.6 billion backlog, with management indicating that roughly 50% to 55% is expected to convert into revenue within the next 12 months, creating unusually strong near-term revenue visibility that is not fully reflected in valuation.
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This is reinforced by year-to-date order intake of approximately $2.0 billion and signed master supply agreements with two major hyperscalers, with the first hyperscaler order expected in the near-term fiscal window acting as the key catalyst that links contracted demand to realized revenue acceleration. Financially, Fluence reported revenue of $464.9 million, gross margins of 10.0%, and an improved adjusted EBITDA loss of $9.4 million, while reaffirming full-year revenue guidance of $3.2 billion to $3.6 billion and EBITDA guidance of $40 million to $60 million, signaling improving operating momentum despite near-term volatility.
Although free cash flow remains negative and inventory has increased to $764.2 million, these pressures reflect execution timing and upfront deployment against a large contracted backlog rather than structural weakness in demand. The setup is further strengthened by elevated short interest of approximately 36.7% of public Class A shares, creating meaningful positioning asymmetry where incremental positive catalysts can drive rapid repricing.
Additional support comes from roughly $900 million in liquidity and potential tariff-related recoveries, which together reduce balance sheet constraint risk during the ramp phase. Overall, Fluence represents a bullish re-rating opportunity where hyperscaler demand, backlog conversion visibility, and crowded positioning converge ahead of a near-dated catalyst that can shift sentiment from policy-driven skepticism to fundamentals-driven valuation expansion over the coming quarters as execution evidence compounds.
Previously, we covered a bullish thesis on Microvast Holdings, Inc. (MVST) by Crazerz in January 2025, which highlighted robust revenue growth, improving margins, peer undervaluation, and solid-state battery upside. MVST’s stock price has depreciated by approximately 30.82% since our coverage. The Mispricing Desk shares a similar view but emphasizes hyperscaler-driven backlog visibility and near-term order catalysts in Fluence Energy’s grid-scale energy storage business.
Fluence Energy, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held FLNC at the end of the first quarter which was 33 in the previous quarter. While we acknowledge the risk and potential of FLNC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLNC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
