TL;DR
Shares of US-based startup Oklo went up by 12.19%. This came after Canaccord Genuity gave it a buy rating. The firm also said the stock could go up to $175. Oklo is working on small nuclear power plants. But it has not started making money yet. It is not expected to earn a profit before 2030. The company has some cash now, but experts say it will need more in the coming years.
Shares rise after analyst rating
Oklo Inc.'s stock rose by 12.19% on Thursday. This happened after Canaccord Genuity, a financial services firm, began tracking the company. It gave Oklo a "buy" rating and set a price target of $175. At the time, Oklo’s stock was trading at around $137. Canaccord believes that Oklo has strong long-term growth potential. The company is working on small nuclear reactors. Analysts say these reactors could become an important source of clean energy in the future.
Oklo has no revenue yet
Oklo is a startup. It has not started earning revenue and is not expected to make a profit before 2030. Still, Canaccord said it is looking at Oklo’s business plan beyond 2030, all the way to 2050. The company has around $530 million in cash. It is spending about $53 million per year. At this rate, the company can continue operations for several more years. But this could change. As Oklo moves toward building its plants, its spending may increase. Some analysts think Oklo could need as much as $1.5 billion in the next five years. This means the company will need to raise more money through loans or selling more shares.
Experts still cautious
Other investment experts are not as confident. Motley Fool Stock Advisor, a popular service among retail investors, did not include Oklo in its recent list of top stock picks. Motley Fool’s top picks in the past included big names like Netflix and Nvidia, which gave high returns to investors. The absence of Oklo from the list suggests that it is still seen as a risky stock. Oklo’s future depends on many factors. It must build its technology, manage its spending, and raise more funds. The company could grow if the nuclear energy market expands, but it also faces many challenges.
FAQs
- Why did Oklo’s stock price go up?
The stock rose after Canaccord Genuity gave it a buy rating and a price target of $175. - Is Oklo earning revenue right now?
No. Oklo has no revenue and is not expected to be profitable before 2030. - What risks does Oklo face?
The company will need more money to stay in business. It may have to raise $1.5 billion in the next five years.
