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Shares of nuclear technology company Oklo (OKLO) are slipping after warning about continued losses ahead. Morning Brief Anchors Madison Mills and Brad Smith break down the latest news surrounding the company.
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Shares of nuclear power startup Oklo falling in pre-market trading after the company reported it expects significant expenses and continuing financial losses going forward. Oklo pairing back the double-digit gains that followed its announcement on Monday, that it's made progress on its application with the US Nuclear Regulatory Commission, and days after signing that agreement with the Idaho National Lab to find a site for its first powerhouse. You can see those shares down about 5%. A lot going on with Oklo here. One thing to point out straight away is that the company does not have any revenue. So, that is the first thing here. No revenue. However, when you look at the share price, if we can pull up a chart showing the past couple of days here, you can see there was just a big turnaround in the stock off that news. I just mentioned the potential partnership with the Nuclear Regulatory Commission. You can see that huge pop on Monday and then, boom, coming out with earnings, a big surprise to the downside, and you've got that leading to a little bit of the sell-off in these Oklo shares, which is really interesting given that run-up that we had just seen off the back of that announcement. But I think the company fundamentals here, when it comes to the revenue story, weighing on the stock.
Yeah. I mean, when you're not generating revenue, a lot of the investors and analysts of any coverage that's out there are gonna focus in on how much you're looking to spend. And here's some numbers for you in the outlook and guidance. Oklo is expecting and projecting cash use in operations for the full year 2025 to be in between 65 million and 80 million dollars here. And so, that's money going out the door and being put as investments into projects that will eventually get them revenue generating and profitable. Uh, they had an actual EPS in this most recent quarter of a loss of about seven cents, that was compared to the forecast that was of about six, six and change cents. All those things considered, this is still a long kind of runway that we're looking at for Oklo to be a extremely profitable company to the point where it passes through and pays dividends to shareholders at the end of the day. And it's gonna come back to these reactor designs that you mentioned too. Powerhouse reactor design, that's been expanded to 75 megawatts. The scientists out there can chime in on Twitter after we post this clip and let us know exactly how significant that is. But, the other thing too was the acquisition here. Atomic Alchemy, they've completed that acquisition, uh, and that essentially enters them into the radioisotope market. So, we've exhausted at least most of my 11th grade
No.
science knowledge.
Well, it's important because it is this nuclear play, but I think a lot of investors who might be getting into these nuclear names, they saw the run-up in utilities, they saw the run-up in nuclear, and they got invested. And then, you have a company like this, where you still have to make sure you're having your good investor hygiene, looking at the fundamentals moving forward here.
Yeah. I did take science in college too. So, there.
Nice. There we go. I was, I was a rocks for jock.
Don't, never sell yourself short.
