When the market's fervor sends growth stocks soaring, sometimes it feels that the rides will last forever. Of course, they won't.
Investors are getting a taste of that today with Oklo (OKLO 3.33%) stock, which is heading lower for no reason in particular. As of 12:10 p.m. ET, shares of the nuclear energy stock are down 4%, paring back an earlier decline of 6.5%.
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No news doesn't necessarily mean good news
Investor enthusiasm for Oklo stock has been considerable in 2025 as political support for advanced nuclear small modular reactors (SMRs) continues to grow. However, much of the stock's extraordinary rise this year has been predicated on the company's potential -- not material gains.
Unlike NuScale Power (SMR 1.81%), Oklo doesn't have an SMR design that the U.S. Nuclear Regulatory Commission has approved, and its path to commencing commercial operations is a lot more fraught with risk than some of its nuclear energy peers.
While the bulls are enthusiastic about the company's prospects, some are recognizing that Oklo stock has gotten ahead of itself. Yesterday, for example, Seaport Research downgraded the stock to neutral due to the stock's high valuation. It's quite likely that Main Street investors are recognizing Seaport Research's perspective as a more reasonable take on the stock than the bulls who continue to pile into the stock.
Does the pullback provide a good buying opportunity?
While Oklo stock is dipping lower today, it doesn't mean that those who had been on the sidelines should step in and click the buy button. There are still considerable hurdles that the company must overcome before it starts generating revenue -- let alone a profit.
Cautious investors who are interested in nuclear energy exposure should recognize that they have other opportunities than Oklo, or even NuScale Power, which has its own set of risks. Nuclear energy exchange-traded funds (ETFs), for example, are a great option for those who seek a more conservative investment option.
