Oklo (NYSE:OKLO) Announces US$400 Million Follow-on Equity Offering
In a remarkable turn, Oklo witnessed a 101% surge over the past month, which seems largely influenced by the company's active strategic maneuvers and financial initiatives. The announcement of a $400 million Follow-on Equity Offering on June 2 likely played a role, signaling strong investor interest and confidence. Additionally, Oklo's collaboration with Korea Hydro & Nuclear Power through a Memorandum of Understanding on developing nuclear technology further strengthened market sentiment. These corporate developments coincided with a largely positive market trend, as the broader market saw significant gains over the same period.
Be aware that Oklo is showing 4 risks in our investment analysis and 1 of those is a bit unpleasant.
Uncover 19 companies that survived and thrived after COVID and have the right ingredients to survive Trump's tariffs.
Oklo's shares have experienced a very large total return over the last year, reflecting a strong boost in investor confidence amid several corporate developments. This performance surpassed both the US Market, which returned 11.5%, and the US Electric Utilities industry, which returned 13.4%. However, detailed analysis shows that Oklo remains unprofitable with zero revenue and a net loss exceeding US$73.62 million in FY 2024. Despite these financial challenges, the company has seen substantial share price appreciation, potentially driven by its collaborations, equity offerings, and infrastructure projects highlighted in recent news.
The recent significant price movement indicates investor enthusiasm potentially tied to the company's strategic efforts, including the $400 million Follow-on Equity Offering and partnerships with KHNP. However, Oklo's current share price remains closely aligned with consensus analyst price targets, indicating potentially limited upside unless further substantial progress is made in its projects and collaborations. With forecasts suggesting continued unprofitability and stagnation in revenue growth, the market seems to be betting on the long-term innovative potential rather than immediate financial turnaround. The company's current Price-To-Book Ratio, noted to be expensive, underscores this optimism, albeit with specific risks associated with the anticipated financial performance.
Explore historical data to track Oklo's performance over time in our past results report.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NYSE:OKLO.
This article was originally published by Simply Wall St.
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The Hill
35 minutes ago
- The Hill
Trump clears path for Nippon Steel investment in US Steel, so long as it fits the government's terms
WASHINGTON (AP) — President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But U.S. Steel and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a 'golden share' — essentially veto power to ensure the country's national security interests are protected. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership,' the two companies said. 'This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. The companies offered few details on how the golden share would work and what investments would be made. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans.' The Japan-based steelmaker had been offering nearly $15 billion to purchase the Pittsburgh-based U.S. Steel in a merger that had been delayed on national security concerns starting during Joe Biden's presidency. Trump opposed the purchase while campaigning for the White House, yet he expressed optimism in working out an arrangement once in office. 'We have a golden share, which I control,' said Trump, although it was unclear what he meant by suggesting that the federal government would determine what U.S. Steel does as a company. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' Still, Nippon Steel has never said it was backing off its bid to buy and control U.S. Steel as a wholly owned subsidiary. The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday. ___ Associated Press writer Marc Levy in Harrisburg, Pa., contributed to this report.
Miami Herald
39 minutes ago
- Miami Herald
Why the US is stronger than you think – and what that means for a world on edge
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The U.S. is in by far the most stable part of it geographically." Don't miss the move: Subscribe to TheStreet's free daily newsletter In fact, he noted that, currently, only two countries are technologically dominant: China in post-carbon energy (nuclear, solar, EVs, supply chains, critical minerals) and the U.S. in artificial intelligence (hyperscalers, chips, compute). At present, the primary driver of global uncertainty and geopolitical volatility that "feels so dangerous to people is that the most powerful country in the world has decided that they, we, do not want to play the leadership role by the old rules." From Bremmer's perspective, that means saying "no" to U.S.-led collective security, a global trade system shaped by Washington, and American-backed international law and democratic values. And this change, he said, "profoundly impacts U.S.-aligned democracies that relied on this leadership." 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"I think that that does say something – that even in this environment, where Trump is more willing to push and is getting less information, there still are some clear red lines. And this is a clear red line." Despite high debt, Bremmer said the U.S. benefits from its reserve currency status, technological dominance, and military umbrella, making it difficult for other countries to "derisk" from the U.S. Bremmer suggested that in the age of exploding AI, short-term spending as much as humanly possible might be market and geopolitically positive for the U.S., provided it's spent wisely (e.g., chips, education). While historically overdue for a recession (averaging every seven years post-WWII), the massive Covid stimulus and the unprecedented growth of AI capabilities (doubling every six months) could fundamentally alter economic cycles, making traditional definitions of recession less applicable, said Bremmer. 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Bremmer also believes Elon Musk understands he "damaged his interests" by fighting with Trump, and "that getting into a long-term fight with Trump was unsustainable." And Musk, according to Bremmer, is expected to support Trump's political goals and candidates in the midterms. The Democratic Party is not expected to settle on a coherent platform until closer to 2028 due to a broad range of views among potential leaders, according to Bremmer. And the midterm elections will be a decision about Trump. While Trump is currently doing well on immigration and the economy, his economic standing is expected to weaken over the summer due to trade issues, said Bremmer. What's more, a much stronger push to the economic populist left is anticipated, a phenomenon not seen since the post-Gilded Age. According to Bremmer, current populism from the right is driven by disaffected industrial working-class men in former industrialized places like Appalachia, the Rust Belt, and former East Germany, focusing on manufacturing and anti-immigrant sentiment. Bremmer predicts an enormous spike of populism from the left in the next electoral cycle, driven by college-educated, urban, white-collar professionals losing jobs due to AI. This movement, he said, will be more progressive on cultural issues but strongly opposed to the "deep state," major corporations, banks, and technology companies. Got questions about retirement, email Stagflation Risks: Shield Your Retirement Portfolio The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Axios
an hour ago
- Axios
Trump clears U.S. Steel-Nippon deal, terms still up in the air
U.S. Steel and Nippon Steel said Friday they have entered into a security agreement with the U.S. government, as President Trump signed an executive order allowing their proposed partnership to proceed. Why it matters: It's a major hurdle cleared toward the two companies' eventual combination, though the exact structure of the deal still remains mostly unclear. Catch up quick: The two companies issued a statement late Friday confirming a National Security Agreement that includes $11 billion in investment commitments by 2028, as well as a "Golden Share" for the U.S. government. "With those approvals, all necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly," the companies said. Yes, but: It's still not clear how much Nippon Steel is paying for U.S. Steel, or what the final entity will look like. U.S. Steel shares rose 5% in after-hours trading late Friday to nearly $55, the original price the Japanese company agreed to pay before President Biden blocked the transaction in early January. The intrigue: At a rally in Pennsylvania last month, Trump said Nippon would be investing $14 billion as part of a deal.
