Oklo stock (NYSE: OKLO) tumbled over 16% on Wednesday, sparking heightened trading activity and drawing attention from investors and analysts.
The stock’s sharp intraday decline appeared across multiple exchanges, prompting volatility in options and increased volume compared with recent averages.
Market watchers are digesting company statements and regulatory filings as brokers update guidance.
This sudden move has raised questions about near-term prospects and will likely influence sentiment in the broader clean energy sector.
Why is Oklo stock plunging?
The main trigger behind Oklo stock’s sharp drop on Wednesday is a report by news outlet Financial Times, thet scrutinized the nuclear startup’s $20 billion valuation despite having zero revenue or operating licenses.
With Wednesday’s slide, Oklo stock is looking at 30% weekly decline, erasing recent gains that had propelled shares over 500% year-to-date.
The Financial Times report highlighted major concerns regarding Oklo’s business models and its connections with politicians.
The Silicon Valley-based company, which aims to deploy small modular reactors using liquid sodium as coolant, has yet to secure Nuclear Regulatory Commission approval or finalize any binding power contracts.
Questions are raised about “appearance of impropriety” regarding Oklo’s access to specialized reactor fuel, particularly as former Oklo board member Chris Wright now serves as Trump’s energy secretary.
What analysts are saying?
Wall Street voices are growing louder on valuation worries.
Jim Cramer told investors to take profits, arguing the stock has “gone too far, too fast” and calling the surge “the height of speculation.”
He pointed out that Oklo burns close to $100 million a year with zero revenue, yet still carries a roughly $23 billion valuation.
Goldman Sachs has also flagged the risk, starting coverage at Neutral and noting the “frothy valuation” and the company’s dependence on sodium-cooled reactor tech, a design that has historically struggled.
Investor nerves were also rattled by selling activity.
ARK Invest offloaded 53,353 shares worth about $8.5 million on Monday, a sign that institutional conviction may be wavering.
On top of that, insiders, including CEO Jacob DeWitte and CFO Craig Bealmear, have cashed out more than $50 million during the rally.
With just $226 million in cash on hand, negative operating cash flow of $52.1 million, and a steep burn rate, fears of future dilution are creeping in.
While Oklo secured Department of Energy support for three advanced nuclear fuel fabrication facilities and broke ground on its Idaho pilot project, analysts warn the company won’t achieve profitability until approximately 2030.
Oklo stock’s decline reflects growing skepticism that current valuations adequately account for execution risks in the capital-intensive nuclear sector.
Wednesday’s plunge marks a reality check on lofty valuations amid regulatory, financial, and political uncertainties, reminding investors that nuclear innovation faces tough, expensive challenges ahead.
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