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Last week, Oklo’s stock jumped significantly due to news about a deal with Metaplatforms.
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However, the stock closed lower on both Monday and Tuesday.
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For those optimistic about Oklo, nothing seems to have changed.
After its notable rise last Friday, Oklo’s stock hasn’t been performing well this week. The company, known for its advanced nuclear reactors, saw its stock decline on consecutive days. With prices continuing to drop, it seems unlikely anything will shift that trend.
As of 11:35 a.m. ET, Oklo’s stock had fallen 4.8%.
There’s been no new news from Oklo that investors could pinpoint as the cause of this dip. It appears that the lagging interest might be a result of two factors.
First, Oklo’s stock surged last week, thanks to the contract with Metaplatforms. On Friday, it closed at $105.31, a mark it hadn’t seen since early December. It’s reasonable to think investors could be cashing in their gains after that rally.
Secondly, a geothermal expert reported that Ormat has secured a 20-year power purchase agreement with Switch, a data center operator. In a release regarding this, Ormat’s CEO hinted at possibilities for further expansion in their collaboration.
“We are encouraged by the opportunity to continue to grow this relationship with the potential for PPA expansion and additional new contracts to supply geothermal power to Switch as we continue to expand our business against the backdrop of strong demand for the data center industry and Switch’s unique capabilities.”
Investors might now view Oklo’s potential partnerships with data centers as waning, especially as geothermal energy becomes a standout alternative for power needs. It’s interesting that nuclear reactors have been drawing attention recently.
While the fall in Oklo’s stock might be concerning, the overall bullish sentiment remains unchanged. Geothermal power is somewhat restricted by geography, limiting its applicability for many data centers across the U.S. So, if you felt optimistic about Oklo yesterday, there’s no reason not to still feel that way today.
Before making any investment in Oklo, consider this:
According to analysts from a prominent advisory service, they’ve identified other stocks they believe are better buys right now, and Oklo isn’t on that list. These other stocks are expected to yield substantial returns in the coming years.
