There's a great deal to like about geothermal energy producer Fervo Energy (FRVO), including its large “potential backlog,” the fact that major tech and other energy companies have made deals with the firm, and its innovative technology. Most recently on the latter front, the firm disclosed significant improvement in its drilling rates.
Still, given the company's enormous valuation, a meaningful logistical hurdle that it's reportedly facing, and the weakness of FRVO stock in recent weeks, the shares appear to be too risky to hold at this point. Also worth considering, as I've pointed out in a number of articles, is the fact that the Street often is very bullish on new technologies in their early days and then subsequently sours a great deal on them. In fact, Fervo may already be undergoing this process.
