Why Oklo Stock Just Got Obliterated Today
Oklo shares cratered as nuclear ambitions hit regulatory brick wall—again.
Regulatory Roulette
The NRC slammed the brakes on Oklo's advanced reactor design—citing 'insufficient safety analysis' that reads like a half-finished homework assignment. Investors bolted faster than particles in a fission reaction.
Funding Fallout
Cash burn rates now outpace core temperature spikes. The company's runway shrinks while competitors secure billion-dollar government grants—classic case of betting on fusion when fission pays the bills.
Market Meltdown
Traders treat nuclear startups like crypto tokens—pump on hype, dump on reality. Today's selloff proves even atomic energy can't escape Wall Street's short-term memory.
Image source: Getty Images.
What spooked Oklo investors today?
Blame UBS for the early sell-off.
In a note on TheFly.com this morning, the Swiss megabanker initiated coverage of Oklo stock, but only with a neutral (i.e., not buy) rating, and with a price target of only $65 (which is about where Oklo trades right now).
UBS says it's "cautiously optimistic" that President Trump's series of executive orders issued in May will help spark a nuclear renaissance in the U.S. and help to create a $75 billion market for nuclear power plants and nuclear fuel. However, UBS needs to see further progress commercializing the technology -- not just performing R&D -- before it's willing to buy.
Is Oklo stock a sell?
Mind you, UBS isn't saying to sell Oklo stock (although you really might want to consider that). But the analyst does observe drily that Oklo's stock seems "elevated," which seems to me a clue to why UBS is holding off on buying.
The truth of the matter is it's very hard to say if Oklo's valuation is appropriate today. The company has no earnings on which to hang a P/E ratio. It has no free cash flow, either, nor even any revenue. Fact is, most analysts who follow Oklo don't expect the stock to do much of anything at all until 2027, when revenues might arrive, and earnings are as far away as 2030 in the best case.
Oklo stock remains speculation, pure and simple. Unless you like gambling, it's best to stay away.
