Google Signed a Deal for Existing Reactors. So Why Did Oklo and NuScale Jump on the Constellation Energy News? The Read-Through Investors Are Missing.
The technology sector’s commitment to nuclear energy continues to strengthen. Just last week, Google’s parent company Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) agreed to purchase nuclear-generated electricity from utility company Constellation Energy‘s (NASDAQ: CEG) existing nuclear power plants for 15 years, in addition to making a 20-year agreement to purchase 890 megawatts’ worth of power from nuclear power production facilities that Constellation will build in the future. Alphabet’s long-term commitment will enable Constellation Energy to confidently invest $4.3 billion in new nuclear energy capacity, adding to its already-extensive nuclear power portfolio.
Constellation shares jumped on the news, of course. But so did shares of small modular reactor (SMR) developers Oklo (NYSE: OKLO) and NuScale (NYSE: SMR), despite having no involvement in Constellation’s agreement with Google. What gives?
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