OpenAI’s spending spree continues unabated, and many have already witnessed share price surges across the power sector. One of the biggest winners of this trend has been Oklo (OKLO), whose shares are up over 550% this year alone. In the last few days, Cathie Wood’s ARK Autonomous Tech ETF (ARKQ) sold 53,353 shares of the company’s stock, and this has spooked some investors. The stock price has lost more than one-fifth of its value in a matter of two weeks, which shows how fragile the company is.
As exciting as the nuclear energy opportunity is, Oklo still needs to deliver financially, and that’s where most people are doubting it. Oklo is a pre-revenue company that won’t make anything in the foreseeable future. The company has to deliver on a tight timeline, scaling at a level never seen before. What it has going its way is cash availability in the form of government support and hyperscalers who would want to see it succeed. Other than that, things on the financial and regulatory front are a challenge. The company may continue to raise capital, which would bring the stock further down and add to the volatility.
