Shares of small modular (nuclear) reactor-builder Oklo (OKLO +5.52%) stock jumped 6.8% through 12:40 p.m. ET Tuesday -- but not in reaction to anything Oklo did.
Instead, shares of this nuclear power stock appear to be reacting to positive news overseas.
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Good news for Rolls-Royce... is good news for Oklo, too?
The nuclear power sector got a jolt of good news yesterday when World Nuclear News reported that Britain's "National Wealth Fund" has committed $805 million to Rolls-Royce's (RYCEY +1.72%) SMR subsidiary to develop small modular reactors (SMRs). And that's just to start with.
The NWF is a U.K. public financial institution launched in October 2024 with the goal of investing up to $37.7 billion total in clean energy and industrial growth projects. The initial $805 million will be spent to support another government-owned organization, "Great British Energy-Nuclear," as it purchases three Rolls-Royce SMRs, each rated at 470 MWe, and installs them on the island of Anglesey, North Wales.
NYSE: OKLO
Key Data Points
Why is this good news for Oklo?
This actually may not be good news for NuScale, despite investors initially thinking so. On the surface, this is a story of Britain embracing nuclear power in general, and small modular reactors in particular, opening up the possibility he government will buy a few from Oklo.
As a UK-initiated project run through a UK-controlled organization that places its first order with a favored U.K. contractor, though... well, I suspect this actually bodes poorly for Oklo's chances of making SMR sales in the U.K.
Combined with yesterday's news that Goldman Sachs has cut its price target on Oklo stock to $55 -- and declined to endorse buying the stock -- I suspect it's a better reason to sell Oklo stock than to buy it.
