Will Oklo’s earnings coming up on Nov. 11 power the nuclear energy stock to a new high?
Oklo (OKLO 1.11%) stock hit an all-time high of $193.84 per share on Oct. 15, surging a whopping 700% through mid-October. Though the stock pulled back for a breather after that, it still ended the month up 18.9%, according to data provided by S&P Global Market Intelligence.
Good news continued to flow for the nuclear energy start-up, with the U.S. Department of Energy (DOE) selecting Oklo for yet another pilot program and the company signing a massive $2 billion partnership for nuclear fuel recycling.
All eyes are now on Nov. 11, when Oklo announces its third-quarter numbers.
Image source: Getty Images.
Why Oklo stock has skyrocketed in recent weeks
Oklo is developing fast-fission, small nuclear power plants called Aurora powerhouses to deliver clean energy at scale. Since Oklo’s plants can also run on recycled fuel, it has received the backing of the U.S. government.
In October, the DOE selected Oklo along with three other companies for its advanced nuclear fuel line pilot projects. Oklo will build and operate three fuel-fabrication facilities under the project to support the DOE’s goal to deploy several advanced reactors in the U.S.
Oklo is already part of the DOE’s Reactor Pilot program, under which the government plans to demonstrate nuclear criticality in at least three test reactors by July 4, 2026. Oklo has started work on the reactors and broke ground for its first Aurora powerhouse at the Idaho National Laboratory (INL) in September. Though Oklo has been working with the DOE and INL since 2019 to start its first plant, President Donald Trump’s push to boost nuclear energy capacity in the U.S. has put Oklo in the limelight and given it an opportunity to fast-track things to meet the government’s July 4 target.
Oklo’s ability to convert nuclear waste into clean electricity is an important differentiator. In October, Oklo also signed a $2 billion transatlantic partnership with Europe-based newcleo. The two companies will jointly invest and develop fuel fabrication facilities that can repurpose surplus plutonium into fuel for use in advanced nuclear reactors. Oklo is also investing $1.68 billion to build a fuel recycling facility in Tennessee.
Can Oklo stock run any higher?
Some investors saw an opportunity to take profits off the table after the meteoric rise in Oklo’s shares in recent months, and that’s the biggest reason why the stock lost momentum in late October. Cathie Wood‘s Ark Autonomous Technology & Robotics ETF, for instance, trimmed its position in Oklo by selling some shares on Oct. 21 and Oct. 28.
Today’s Change
(-1.11%) $-1.25
Current Price
$111.40
Key Data Points
Market Cap
$17B
Day’s Range
$109.82 – $117.32
52wk Range
$17.14 – $193.84
Volume
91K
Avg Vol
20M
Gross Margin
0.00%
Dividend Yield
N/A
On the other hand, Oklo bulls remain confident. In early October, George Gianarikas from Canaccord Genuity initiated a buy rating on Oklo stock with a price target of $175 a share. The analyst sees Oklo as a potential leader in the nuclear energy renaissance.
Because Oklo is a pre-revenue company, its upcoming earnings report on Nov. 11 after market will be less about numbers and more about business developments and milestone updates.
Management’s commentary on project timelines will decide where Oklo stock is headed next. After all, anyone who’d invested $10,000 in Oklo stock one year ago would still have over $45,000 now. Since the company’s objective is to generate revenue by selling electricity from its plants, which is still years away, it must justify its premium valuation in the meantime.