Oklo Sinks Nearly 30% Intraday After Next-Gen Nuclear Firm Reports Wider-Than-Expected Q3 Loss
$Oklo Inc (OKLO.US)$ sank nearly 30% intraday Friday after the next-generation nuclear-technology firm reported a wider-than-expected Q3 loss – news that took other nuclear stocks lower as well.
OKLO shed as much as 27.5% to a $17.31 session low after the company reported after the bell Thursday that it lost $0.08 per share in the latest quarter – higher than the $0.05 of red ink that analysts had reportedly expected.
The company also reported $2.5 million of interest income, but no operating revenues.
The results reportedly prompted B. Riley to cut its Oklo price target to $10 from a previous $27, although the firm maintained its "Buy" rating on the stock.
Still, Oklo – whose backers include OpenAI CEO Sam Altman, who serves as the firm's board chair – put a positive spin on results.
"We are entering an era of unprecedented energy demand — rivaled perhaps only by initial conversion to electrification over a century ago," co-founder and CEO Jacob DeWitte said in a letter to shareholders. "Momentum is building every week — regulators are modernizing, bipartisan support is growing and some of the most influential companies are investing heavily in the space."
Nonetheless, Oklo's sell-off took other next-generation-nuclear stocks down as well on Friday.
For instance, $NANO Nuclear Energy (NNE.US)$ fell as much as 13.9% Friday morning to a $19.50 session low, although it later mostly recovered.
Next-gen-nuclear stocks like Oklo and Nano Nuclear had been hitting record highs in recent weeks after $Microsoft (MSFT.US)$, $Alphabet-A (GOOGL.US)$ and $Amazon (AMZN.US)$ all announced contracts or investments in atomic energy to power their cloud businesses — which require lots of electricity.
Microsoft made perhaps the highest-profile move in September when it signed a deal to buy power that utility $Constellation Energy (CEG.US)$ will produce at Pennsylvania's Three Mile Island Unit 1 nuclear reactor, which closed in 2019.
The contract means CEG will restart Unit 1, which is located on the same site as the Three Mile Island Unit 2 reactor that suffered a partial meltdown in 1979 in the worst accident in U.S. nuclear-power history.
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Jerry Kronenberg
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