Oklo Inc (NYSE:OKLO) stock is trading lower Friday morning as investors react to the company's massive new capital raise. In a filing with the SEC from Thursday’s after-hours session, the company disclosed entry into an equity distribution agreement to sell up to $1.5 billion of its Class A common stock. Here’s what investors need to know.
- Oklo stock is taking a hit today. What’s weighing on OKLO shares?
What To Know: Oklo shares otherwise rallied during Thursday’s regular trading session after Nvidia CEO Jensen Huang stated that small modular reactors are essential for meeting the massive power demands of the booming AI industry.
The stock gained momentum as Huang predicted that “a whole bunch” of these reactors would be powering data centers within six to seven years, providing a strong validation for the nuclear sector.
The sell-off is primarily driven by fears of dilution. An ATM offering of this magnitude increases the total number of shares outstanding, which inherently reduces the ownership percentage of existing shareholders. Additionally, the potential addition of $1.5 billion in new stock creates a significant supply overhang.
As new shares enter the market, they can absorb buyer demand and suppress the stock price. Markets generally price in this sudden increase in supply and the corresponding reduction in future earnings per share, leading to the immediate drop seen late Thursday.
Benzinga Edge Rankings: Benzinga Edge rankings currently highlight the stock’s intense activity with a notably high Momentum score of 98.73.
OKLO Price Action: Oklo shares were down 5.77% at $105.16 at the time of publication on Friday, according to Benzinga Pro data.
The 52-week range for Oklo has been quite expansive, with a low of $17.14 and a high of $193.84, reflecting substantial price fluctuations over the past year. This wide range indicates a high level of volatility, which can present both risks and opportunities for investors.
The current trading price is closer to the upper end of this range, but the recent drop may signal a potential shift in market sentiment.
How To Buy OKLO Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Oklo’s case, it is in the Utilities sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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