Oklo Stock Skyrockets: Here’s Why Traders Are FOMOing In Today

Nuclear energy play Oklo (NYSE: OKLO) is lighting up the market today—and no, it's not just the uranium glow. Here's what's fueling the rally.

The catalyst? Street whispers suggest institutional accumulation after yesterday's regulatory nod for its compact fission reactors. Suddenly every energy fund wants a slice of the next-gen nuclear pie.

Short squeeze alert: With 28% of float sold short, today's 17% pop smells like a classic gamma ramp. Cue the usual suspects—retail traders piling in after CNBC flashed the ticker.

Reality check: Remember folks, this is the same market that thought WeWork was 'tech'. Maybe wait for actual revenue before YOLOing the rent money?

Image source: Getty Images.

What's Wall Street saying that has investors charged up?

Oklo investors have been seeing increasingly favorable commentary from analysts over the past week, withlifting its price target to $68 from $30. Most recently, Daiwa upgraded Oklo stock to outperform from hold and raised its price target to $86 from $58. According to The Fly, Daiwa predicated its upwardly revised target on the belief that Oklo will benefit from a favorable regulatory environment. In addition, Daiwa informed investors in a research note that it believes the company's distributed power solution provides a "promising long-term answer" to the current congestion in connecting projects to the electrical grid.

Issued over the weekend, Daiwa's $86 price target on Oklo stock implies upside of 13.9% from where shares closed last Friday.

Should investors race to power their portfolios with Oklo stock now?

While the favorable opinions that Daiwa and Citigroup have about Oklo stock are encouraging, it's important to remember that analysts often have shorter investing horizons than the multiyear holding periods that The Motley Fool favors. Therefore, investors should investigate the company thoroughly before clicking the buy button.

Also, it's important to recognize that not everyone is bullish about Oklo stock. Moses Sutton, an analyst at BNP Paribas Exane, initiated coverage on Oklo last week, assigning an underperform rating and a $14 price target.

With such disparate opinions about the nuclear energy stock, those interested in nuclear energy exposure who are unsure about how to proceed with Oklo may find a nuclear energy exchange-traded fund (ETF) to be a more favorable option.