NuScale Power Stock Plummets 18.8%: What’s Behind the Nuclear Freefall?
Another week, another nuclear meltdown on Wall Street.
The Numbers Don't Lie
NuScale Power investors watched their positions evaporate as the stock cratered 18.8% this week. The decline hit like a reactor shutdown—sudden and devastating for anyone caught holding the bag.
Market Forces at Play
Regulatory headwinds slammed the small modular reactor specialist just as broader energy sector volatility intensified. Trading volumes spiked while institutional money flowed out faster than coolant from a breached system.
Industry Domino Effect
The selloff contaminated other nuclear plays too—proving once again that when Wall Street panics, it doesn't bother with containment protocols. Another reminder that 'disruptive technology' often disrupts shareholders most of all.
Fluor is selling SMR stock
Engineering and construction companywas an early investor in NuScale and is one of its largest shareholders. The two companies entered an agreement last month in which a significant portion of Fluor's Class B shares was converted into Class A shares, NuScale's common stock. The agreement included a 30-day lock-up, initially preventing Flour from selling its newly converted shares, but NEAR the end of last week, Flour sold nearly $100 million worth after the deadline passed.
The influx of new shares to the market, and the expectation that hundreds of millions of dollars' worth of shares could be sold over the next two years, is sending NuScale stock lower. Investors are also weighing the news that initiated coverage for NuScale rivalthis week with a neutral rating.
Image source: Getty Images.
NuScale's valuation is steep
I believe investors are getting ahead of themselves. The company's market capitalization of more than $10 billion is substantial, considering the technology is unproven and the company's revenue is currently extremely modest.
Still, for investors with a higher risk tolerance, NuScale can be a solid pick. Nuclear energy is having a renaissance of sorts, and the opportunity for NuScale could be massive. Just know it's a long road to profitability, and a lot of risks lie ahead.
