Why Did NuScale Power Stock Sink 18.8% This Week?

Core Viewpoint - NuScale's stock has experienced a significant decline due to major selling pressure from one of its largest shareholders, Fluor, amidst broader market losses [1][2]. Group 1: Stock Performance - NuScale's shares fell by 18.8% this week, while the S&P 500 and Nasdaq-100 decreased by 0.3% and 0.5%, respectively [1]. - The selling of nearly $100 million worth of shares by Fluor after a lock-up period contributed to the stock's decline [2]. Group 2: Shareholder Actions - Fluor, an early investor and one of NuScale's largest shareholders, converted a significant portion of its Class B shares into Class A shares, which are common stock [2]. - The expectation of further share sales, potentially amounting to hundreds of millions of dollars over the next two years, is negatively impacting NuScale's stock price [3]. Group 3: Valuation and Market Sentiment - NuScale's market capitalization exceeds $10 billion, which is considered substantial given the unproven nature of its technology and modest current revenue [5]. - Despite the risks, there is potential for significant growth in the nuclear energy sector, which could make NuScale an attractive option for investors with a higher risk tolerance [5]. - The initiation of coverage for NuScale's competitor, Oklo, by Goldman Sachs with a neutral rating may also influence investor sentiment [3].