NuScale Shares Plummet 18.8% on Fluor Sell-Off and Oklo Rivalry
NuScale's shares have taken a hit this week, dropping 18.8% and underperforming broader stock market indices. This decline comes amidst increased selling pressure from one of its largest shareholders, Fluor, and the initiation of coverage for NuScale's rival, Oklo, by Goldman Sachs.
Fluor, an early investor in NuScale, recently converted a significant portion of its Class B shares into Class A shares. Following a 30-day lock-up period, Fluor sold nearly $100 million worth of NuScale shares, increasing the supply in the stock market. This sale, likely occurring around October 4, 2025, has put downward pressure on NuScale's stock price. Investors anticipate more shares to be sold over the next two years, further impacting the stock's value.
Goldman Sachs initiated coverage for NuScale's rival, Oklo, this week, giving it a neutral rating. This move may also influence NuScale's stock, as it brings increased competition and scrutiny to the small modular reactor (SMR) sector. NuScale's shares have been pressured by this development, with the stock finishing down 18.8% this week.
Despite these challenges, NuScale operates in a growing market. Nuclear energy is experiencing a resurgence, presenting significant opportunities for the company. However, the road to profitability is long, and associated risks remain. NuScale's market capitalization, currently over $10 billion, is seen by some investors as steep, given the unproven technology and modest revenue.
NuScale's shares have declined this week due to increased selling pressure from Fluor and the initiation of coverage for NuScale's rival, Oklo, by Goldman Sachs. While the nuclear energy sector presents opportunities, NuScale faces challenges related to its unproven technology, modest revenue, and the potential for further share sales. Investors will closely watch NuScale's progress as it navigates these issues.
Read also:
- Eric Dane Diagnosed with ALS, Advocates for ACT for ALS
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Meta Unveils Ray-Ban AR Display Sunglasses; TikTok Agrees to $200 Million Deal
- Historic downtown temples to receive restoration funds totaling over 25 million pesos
