Here's Why Uranium Energy Corp Stock Soared This Week
Shares in Uranium Energy (NYSEMKT: UEC) rose by a whopping 17.8% in the week up to Friday morning. The move comes in a positive week of newsflow for the nuclear industry, which is good news for a pure-play nuclear stock like Uranium Energy.
Google signs up for nuclear power
Alphabet's Google became the latest technology behemoth to sign up. The cloud services company signed a power purchase agreement (PPA) for electricity powered by nuclear energy following its deal with Kairos Power. The plan is for Kairos to have the first of multiple small modular reactors online by 2030, leading to more deployments later.
It's the latest in a line of technology companies signing PPAs, following Amazon Web Services' (Amazon's cloud services business) deal to buy power from Talen Energy's nuclear power plant in Susquehanna, Pennsylvania, in March. Microsoft also recently announced a 20-year PPA with Constellation Energy to restart the Three Mile Island nuclear power plant.
Uranium Energy is set to benefit
Cloud services companies' willingness to commit to buying nuclear-powered energy to support their data center operations is a sign of confidence in the nuclear industry. Given their political reach, this could have wider ramifications, too. Nuclear power offers a reliable energy source and helps them meet their net-zero emissions aims.
Given Uranium Energy's position as a leading uranium miner with two extraction-ready mines in South Texas and Wyoming, the company stands well placed to grow with the market. In addition, the company has seven uranium mining projects (with permits in place) in the U.S., Canada, and Paraguay, from which it can expand uranium extraction and procession to meet demand.
If the current trend continues, the company's prospects will likely improve significantly in the coming years.
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Here's Why Uranium Energy Corp Stock Soared This Week was originally published by The Motley Fool