Oklo Stock Drops 28% as Analyst Flags Valuation Risk

Oklo shares fell roughly 28% from the time of a prior rating, underperforming the S&P 500's 8.7% gain over the same stretch. The decline extends a selloff that has left the stock well off its highs.

A Seeking Alpha analyst who previously rated the stock a speculative hold said the story around Oklo has improved. The stock still asks too much, the analyst said. The analyst argued that the valuation does not reflect the risks inherent in the company's development-stage business. Oklo is a developer of small modular nuclear reactors, a technology that has attracted attention from tech companies seeking clean power for data centers. The company has not yet generated revenue from reactor sales and faces regulatory and construction timelines stretching years.

"The story got better. The stock still asks too much," the analyst wrote.