Shares of Oklo Inc. (OKLO) soared 5.15% in after-hours trading on Monday, reversing earlier losses as geopolitical tensions in the Middle East sparked renewed interest in nuclear energy stocks. The surge came following reports of U.S. attacks on key Iranian nuclear sites over the weekend, which has heightened concerns about global energy security and uranium supply.
The nuclear energy sector saw broad gains as investors reassessed the strategic importance of nuclear power in light of potential disruptions to traditional energy sources. Analysts suggest that if the Middle East conflict escalates, it could affect uranium supply from key producers like Kazakhstan, prompting countries to seek alternative sources and potentially benefiting companies like Oklo.
Interestingly, Oklo's stock had dropped over 5% during regular trading hours after Craig-Hallum downgraded the stock to hold from buy. However, the geopolitical developments appear to have overshadowed this downgrade, with investors focusing on the potential long-term benefits for nuclear energy companies in a more unstable global environment. This dramatic turnaround underscores the significant impact that geopolitical events can have on energy-related stocks, particularly in the sensitive nuclear sector.
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