Nuclear Power Industry Overview - Nuclear power stocks are currently underperforming due to regulatory decisions, despite recent popularity [1] - The Federal Energy Regulatory Commission (FERC) denied Talen Energy's request to increase power supply to an Amazon data center from 300 MW to 480 MW [2] - This decision has caused significant stock price declines across the nuclear power sector [3][4] Company Performance - Talen Energy's stock fell 4.5% following FERC's decision [3] - Amazon's share prices dropped 1.6% on the news [3] - NuScale Power's stock decreased by 4.6%, Oklo by 6%, and Nano Nuclear Energy by 10.1% [4] - Constellation Energy lost over 10% of its market cap despite a strong Q3 earnings report [6] Business Models and Revenue - Constellation Energy generates $23.5 billion in annual revenue with 20% operating profit margins [7] - Vistra earns $14 billion annually with 21% operating profit margins [7] - NuScale, Oklo, and Nano Nuclear are focused on developing small modular reactors but currently lack operational revenue [10] Regulatory Impact - FERC's decision raises concerns about grid reliability and consumer costs, impacting the nuclear power industry [6] - The regulatory environment poses a greater threat to companies developing small modular reactors [9][10] Market Trends - Oklo's stock has more than doubled, Nano Nuclear nearly quadrupled, and NuScale almost sextupled over the past 12 months [11] - Investors are showing increased interest in taking profits due to regulatory uncertainties [11]
Why Oklo, Nano Nuclear, and NuScale Power Stocks All Dropped Today