Latest news with #DaiwaSecurities
Yahoo
6 days ago
- Business
- Yahoo
Should You Buy Oklo Stock While It's Below $86?
Key Points Oklo's stock has soared more than 900% over the past 12 months. But it's racking up steep losses and it hasn't generated any revenue yet. Its tech is promising, but too much growth is already baked into its valuations. 10 stocks we like better than Oklo › Oklo (NYSE: OKLO), a producer of microreactors for nuclear plants, went on a wild ride after it went public by merging with a special purpose acquisition company (SPAC) last May. It started trading at $15.50 on its first day, sank to an all-time low of $5.59 less than four months later, but now trades at about $75. That was an impressive multibagger run, but Oklo still hasn't reached Wall Street's top price target of $86, which was set by Daiwa Securities analyst Dennis Ip last month. Should you accumulate Oklo's stock as it trades below that price? Let's review its business model, growth potential, and valuations to decide. How does Oklo plan to reinvent nuclear power plants? Oklo's main product is Aurora, a microreactor that only generates 1.5 MWe of power. By comparison, a traditional large nuclear reactor produces about 1,000 MWe of power. Oklo's microreactors can be chained together to generate up to 15 to 100 MWe of power. That flexibility makes them well-suited for remote and off-grid systems. They also use metallic uranium fuel pellets, which are denser, more resistant to higher temperatures, and cheaper to fabricate than the uranium dioxide fuel pellets used in traditional nuclear reactors. They can also be reprocessed and recycled in a closed loop for about a decade without being refueled, while traditional reactors must be refueled every two years. The company's innovations could reshape modern nuclear power plants. It started working with the U.S. Nuclear Regulatory Commission (NRC) to greenlight those plans in 2016, and the U.S. Department of Energy (DOE) approved its permit to build its first reactor in Idaho in 2019. It attracted even more attention over the past year because Sam Altman, the CEO of OpenAI, previously served as its CEO and chairman. Why is Oklo a difficult stock to value? Oklo's plans sound promising, but it doesn't expect to generate any revenue until it deploys its first microreactors in Idaho in late 2027. Until then, analysts expect it to rack up net losses of $64 million in 2025 and $76 million in 2026. That's a wobbly outlook for a company that ended its latest quarter with just $90 million in cash and equivalents. On the bright side, Oklo's low debt-to-equity ratio of 0.1 still gives it ample room to raise fresh cash with more debt offerings. It's only increased its number of outstanding shares by 14% since its public debut, so it can still issue more shares to boost its liquidity if its coffers run dry. If Oklo successfully deploys its microreactors in Idaho, analysts expect it to generate $13 million in revenue in 2027 as it slightly narrows its net loss to $73 million. But with a market cap of $11.7 billion, it trades like a meme stock at 899 times its 2027 sales. According to Zion Market Research, the global microreactor market could expand at a compound annual growth rate (CAGR) of 19.1% from 2025 to 2034 as the world's population growth, a climate-driven shift toward green energy solutions, and the rapid expansion of the power-hungry cloud and AI markets drive more countries to retire their traditional nuclear reactors. But even if Oklo starts generating revenue in 2027 and grows its top line at a robust CAGR of 20% over the following seven years, its annual revenue would only rise to $47 million. It's already valued at 249 times that estimate, so its upside potential seems limited. That might be why its insiders were net sellers over the past 12 months. Therefore, I think the bulls are too optimistic about Oklo's future, even if its microreactors can eventually reshape the nuclear industry. For now, investors should avoid it and stick with more promising nuclear plays like Cameco or NuScale Power -- which are both generating stable revenue and trading at more reasonable valuations. Should you invest $1,000 in Oklo right now? Before you buy stock in Oklo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oklo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Cameco and NuScale Power. The Motley Fool has a disclosure policy. Should You Buy Oklo Stock While It's Below $86? was originally published by The Motley Fool Sign in to access your portfolio
Business Recorder
04-08-2025
- Business
- Business Recorder
Japanese shares slide most in almost four months on US economic concerns
TOKYO: Japanese shares slid the most in almost four months on Monday, as concerns mounted over the U.S. economy and a potential upheaval in domestic politics. The Nikkei 225 Index of shares sank 1.8% and was set for its steepest decline since April 11. The broader Topix declined 1.5%, with a sub-index of bank stocks plunging 4.2%. U.S. shares fell sharply on Friday after data showed that the world's largest economy created fewer jobs than expected in July and a new round of punishing U.S. tariffs cast a shadow on global trade. On the home front, speculation grew that Prime Minister Shigeru Ishiba might resign after last month's election defeat. Ishiba has consistently denied plans to step down after his ruling coalition lost its majority in the upper house of parliament, but pressure from within his Liberal Democratic Party is mounting. 'We had very weak job market data in the U.S. and sentiment among investors has darkened,' said Kenji Abe, chief strategist at Daiwa Securities. 'There is some chance that Prime Minister Ishiba may be forced to step down, so I think that's one thing we should watch.' There were 34 advancers on the Nikkei against 189 decliners. The biggest loser was Credit Saison with a drop of 8.2%, followed by Yamaha, which sank 7.9%. The U.S. Labor Department said the country added 73,000 nonfarm payrolls last month, below economists' expectations, while June's job growth was revised sharply lower. Tariffs that U.S. President Donald Trump imposed last week on dozens of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said. The tariffs include a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland. Among the few gainers on the Nikkei, chip maker Socionext rose the most, up 3.9%, followed by optics company Hoya, which advanced 2.7%.
New Straits Times
04-08-2025
- Business
- New Straits Times
Japanese shares slide most in almost four months on US economic concerns
TOKYO: Japanese shares slid the most in almost four months on Monday, as concerns mounted over the US economy and a potential upheaval in domestic politics. The Nikkei 225 Index of shares sank 1.8 per cent and was set for its steepest decline since April 11. The broader Topix declined 1.5 per cent, with a sub-index of bank stocks plunging 4.2 per cent. US shares fell sharply on Friday after data showed that the world's largest economy created fewer jobs than expected in July and a new round of punishing US tariffs cast a shadow on global trade. On the home front, speculation grew that Prime Minister Shigeru Ishiba might resign after last month's election defeat. Ishiba has consistently denied plans to step down after his ruling coalition lost its majority in the upper house of parliament, but pressure from within his Liberal Democratic Party is mounting. "We had very weak job market data in the US and sentiment among investors has darkened," said Kenji Abe, chief strategist at Daiwa Securities. "There is some chance that Prime Minister Ishiba may be forced to step down, so I think that's one thing we should watch." There were 34 advancers on the Nikkei against 189 decliners. The biggest loser was Credit Saison with a drop of 8.2 per cent, followed by Yamaha, which sank 7.9 per cent. The US Labor Department said the country added 73,000 nonfarm payrolls last month, below economists' expectations, while June's job growth was revised sharply lower. Tariffs that US President Donald Trump imposed last week on dozens of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said. The tariffs include a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 25 per cent for India, 20 per cent for Taiwan and 39 per cent for Switzerland. Among the few gainers on the Nikkei, chip maker Socionext rose the most, up 3.9 per cent, followed by optics company Hoya , which advanced 2.7 per cent.
Yomiuri Shimbun
04-08-2025
- Business
- Yomiuri Shimbun
Japan's Nikkei Stock Average Shares Slide Most in Almost Four Months on US Economic Concerns
TOKYO, Aug 4 (Reuters) – Japanese shares slid the most in almost four months on Monday, as concerns mounted over the U.S. economy and a potential upheaval in domestic politics. The Nikkei 225 Index of shares .N225 sank 1.8% and was set for its steepest decline since April 11. The broader Topix .TOPX declined 1.5%, with a sub-index of bank stocks .IBNKS.T plunging 4.2%. U.S. shares fell sharply on Friday after data showed that the world's largest economy created fewer jobs than expected in July and a new round of punishing U.S. tariffs cast a shadow on global trade. On the home front, speculation grew that Prime Minister Shigeru Ishiba might resign after last month's election defeat. Ishiba has consistently denied plans to step down after his ruling coalition lost its majority in the upper house of parliament, but pressure from within his Liberal Democratic Party is mounting. 'We had very weak job market data in the U.S. and sentiment among investors has darkened,' said Kenji Abe, chief strategist at Daiwa Securities. 'There is some chance that Prime Minister Ishiba may be forced to step down, so I think that's one thing we should watch.' There were 34 advancers on the Nikkei against 189 decliners. The biggest loser was Credit Saison 8253.T with a drop of 8.2%, followed by Yamaha 7951.T, which sank 7.9%. The U.S. Labor Department said the country added 73,000 nonfarm payrolls last month, below economists' expectations, while June's job growth was revised sharply lower. Tariffs that U.S. President Donald Trump imposed last week on dozens of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said. The tariffs include a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland. Among the few gainers on the Nikkei, chip maker Socionext 6526.T rose the most, up 3.9%, followed by optics company Hoya 7741.T, which advanced 2.7%.
New Straits Times
18-07-2025
- Business
- New Straits Times
Japan's Nikkei edges down, off near 2-week high amid election outcome worries
TOKYO: Japan's Nikkei share average slipped from a more than two-week high to trade lower on Friday as investors weighed the outcome of the nation's upper house election due on the weekend. The Nikkei slipped 0.31 per cent to 39,778.85 by the midday break. Earlier, it had risen to as much as 40,087.59, its highest level since July 1, underpinned by the strong performance of Wall Street, but fell soon as investors started selling to book profits. The S&P 500 stock index and the Nasdaq Composite both finished at record highs on Thursday, as investors embraced strong economic data and earnings reports that showed American consumers remained willing to spend. For the week, the Nikkei is set to rise 0.5 per cent and snap a two straight weeks of losses. The broader Topix was down 0.13 per cent to 2,836.1. "Investors did not want to take a risk in buying stocks ahead of the national election on the weekend," said Yugo Tsuboi, chief strategist at Daiwa Securities. "But the momentum is not bad as about half the stocks rose." Prime Minister Shigeru Ishiba's Liberal Democratic Party (LDP) and its partner Komeito are expected to lose their majority in the upper house on Sunday. Strategists now focus on whether Ishiba will remain in his position or step down after the election, as a gauge of the nation's potential policy shift, which could lead to a cut in the national consumption tax. Chip-related heavyweight fell, with Advantest and Tokyo Electron losing 4.27 per cent and 0.7 per cent, respectively. Disco tanked 10.26 per cent to become the biggest percentage loser on the Nikkei, as the chipmaking device supplier's quarterly operating profit forecast missed market expectations. Uniqlo-brand owner Fast Retailing rose 0.79 per cent to provide the biggest support to the Nikkei. Technology investor SoftBank Group rose 1.5 per cent. Of more than 1,600 stocks on the Tokyo Stock Exchange's prime section, 42 per cent rose and 53 per cent fell, and 4 per cent traded flat.
