Oklo’s stock drops due to ongoing financial losses
Oklo (NYSE: OKLO) saw a decline in its shares after reporting financial losses and warning of more losses to come. The Santa Clara, California-based nuclear energy company noted a widening year-over-year increase in losses, with a loss per share of $0.74 compared to $0.47 in 2023. Despite expectations for a full-year loss from operations of $40 million to $50 million, the company reported $52.8 million. The net loss stood at $73.6 million, and for Q4, Oklo posted a loss per share of $0.07, slightly higher than the estimated $0.06 loss per share.
As of the end of 2024, Oklo maintained $275.3 million in cash, cash equivalents, and marketable securities. The company anticipates revenue generation to commence as early as the first quarter of 2026. Additionally, Oklo announced an increased power generation capability for its Aurora fast reactors, from the previous 15MW to 50MW range, to the current 15 MW to 75 MW range.
CEO Jacob DeWitte expressed confidence in the company’s progress, stating, “Oklo remains on track to deliver commercial power by the end of 2027, backed by a strong and growing customer pipeline.” Wedbush analysts hold a positive outlook on Oklo, reiterating an ‘Outperform’ rating and a $45 price target. Despite being in the pre-revenue stage, Wedbush believes the company is strategically positioned to capitalize on the rising demand for nuclear energy solutions.
With over 14 Gigawatts of capacity in the Oklo pipeline, the company is positioned to benefit from the increasing need for nuclear energy solutions. On the other hand, Citi analysts take a more cautious stance, giving Oklo a ‘Neutral’ rating with a $30 price target. They view the report as “modestly negative,” citing larger cash requirements in the near term and a likelihood of outside capital needed before the first reactor commissioning, which could impact the stock performance negatively.
