Why GE Vernova Stock Just Skyrocketed Today

GE Vernova shares just ripped higher—here's what's fueling the surge.

The Power Play

Investors piled into the energy spin-off as sector rotation accelerated. Traditional energy plays regained favor amid shifting market dynamics—sometimes old-school sectors outperform flashy tech names.

Market Mechanics

Institutional buying triggered momentum algorithms, creating a classic squeeze scenario. Short sellers got caught leaning the wrong way—never fight the tape, even in boring industrials.

The Bottom Line

Wall Street's latest flavor of the month proves even dinosaurs can dance when the music's right. Just don't expect anyone to remember this rally next quarter when the herd moves on to something shinier.

Image source: Getty Images.

What Oracle said last night

Oracle "missed" on its fiscal Q1 earnings, reporting $1.47 per share in profit when analysts' consensus expectation was for $1.48 per share. That's fine, though. What investors are paying the most attention to is CEO Safra Catz's prediction that "Oracle Cloud Infrastructure revenue [will] grow 77% to $18 billion this fiscal year -- and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years."

Catz is promising 14x AI revenue growth over five years. Investors are taking this prediction at face value and assuming that what's good for Oracle will be good for GE Vernova, too.

Is GE Vernova stock a buy?

This is why investors are buying GE Vernova stock Tuesday morning -- but here's the thing:

Oracle's CEO is promising 14x growth over five years, but analysts polled by S&P Global Market Intelligence think GE Vernova will grow earnings by only 5x (to $41.28 per share) by 2030.

On the one hand, that works out to a 38% annualized earnings growth rate, which is pretty fantastic. On the other hand, GE Vernova stock already trades at more than 140 times earnings. That works out to a PEG ratio of 3.8, folks.

Too rich for my blood. GE Vernova stock is a sell.