When it rains, it pours, as they say, and for Oklo (OKLO 5.34%) stock, the plummet is on.
Since closing at a high of $142.65 on Sept. 23, Oklo has now fallen over 22%. Indeed, in the last two days of last week, the stock fell off a cliff, with a 15% drop.
Why is Oklo falling?
Some investors seem jittery for a couple of reasons.
First, a member of Oklo's board of directors, Michael Klein, recently sold 50,000 shares of Oklo for a total sale of $6.67 million.
While it's not uncommon for a director to sell shares, the transaction can easily set off a chain reaction in which investors become concerned that the sale means that something unfavorable is coming.
To be sure, this isn't the first time Klein has sold shares. Back in June, he sold about 300,000 shares of Oklo. As it was then, so it is now, that we simply don't know the exact rationale behind the sale.
The other reason for the plummet could be ascribed to Oklo's valuation. Oklo is a pre-revenue company with no license to operate its Aurora design commercially, yet boasts a market valuation of about $16.4 billion (as of writing on Sept. 26, 2025). Plus, its current price, Oklo trades at a price-to-book multiple of about 25, nearly three times that of its closest competitor NuScale Power (SMR 0.42%).
So, should you hold off buying Oklo for now?
Not necessarily, though to be sure, how much you invest in Oklo depends on your risk tolerance.
Again, Oklo is pre-revenue and is burning cash tp the tune of about $53 million a year. It also lacks regulatory approval to operate its Aurora powerhouse commercially.
Image source: Getty Images.
At the same time, its Aurora powerhouse seems like an AI data center's soul mate: it's modular, small, and can provide 24/7 reliable power.
The company has potential, but don't expect smooth sailing. If the last two days have shown anything, it's a reminder how volatile this nuclear energy stock can be.
