We recently published an article titled Market Slump Drags Down Share Prices of These 15 Companies. In this article, we are going to take a look at where Oklo Inc. (NYSE:OKLO) stands against the other stocks.
Wall Street’s main indices ended this week’s trading on a bloodbath following an overall market selloff as investors shifted their capital into assets offering higher returns.
This article will delve into the factors behind the downturn and explore why each company was particularly affected.
To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
An aerial view of a nuclear plant, its domes casting a unique shadow.
Oklo Inc. (NYSE:OKLO)
Shares of Oklo Inc. (OKLO) on Friday dropped by 5.24 percent to end at $22.78 each following news that a shareholder law firm is investigating the company and certain officers over alleged fraud and unlawful business practices.
The investigation stemmed from a report from Kerrisdale Capital on November 20, questioning the prospects of Oklo. The report highlighted several concerns, including Oklo’s lack of regulator-approved reactor design, its inability to generate revenue for years, and the unproven commercial viability of its planned 15-50 MWe microreactors.
Kerrisdale argued that Oklo was facing significant technical and financial challenges in its goal of operating hundreds of small nuclear power plants and that it was exaggerating the potential economics of its reactors while underestimating the time and capital required to make them a reality.
Overall OKLO ranks 15th on our list of the stocks that were recently dragged down by market slump. While we acknowledge the potential of OKLO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OKLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.