New Oklo Price Target as Clean Energy Name Skyrockets on $5 Billion Deal
The latest move for Bloom Energy reinforces our thinking on this nuclear energy leader.
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Fly Like an Eagle
"Time keeps on slippin', slippin', slippin'
Into the future
Time keeps on slippin', slippin' slippin'
Into the future
I want to fly like an eagle
To the sea
Fly like an eagle
Let my spirit carry me"
-Steve Miller (Steve Miller Band), 1976
Breaking...
Bloom Energy (BE) skyrocketed more than 25% in pre-opening trade on Monday after announcing a $5 billion strategic partnership with Brookfield Asset Management (BAM) .
Under the terms of the agreement, apparently Bloom Energy will become Brookfield's preferred on-site provider of power to BAM's global AI facilities. For Brookfield, this partnership will form the firm's first investment in its own dedicated AI infrastructure strategy by focusing on building out its own power solutions for its large AI "factories" and high-end compute capabilities.
Who is Brookfield?
Brookfield Asset Management or "BAM" is a New York City-based global alternative assets manager. The firm invests for its clients with a long-term focus on real estate and essential services businesses. Offerings are split into three categories: long-term private funds, permanent capital vehicles and perceptual strategies and liquid strategies. Interested? I'm not sure I am. I am more interested in the nuts and bolts concerning Bloom Energy.
Who is Bloom Energy?
Bloom Energy is a San Jose, California based company that empowers businesses to meet exponentially growing demand for power through the provision of its fuel cell system.
Tsi system provides resilient, scalable supplies of on-site electricity for large companies around the world. The firm provides power to data centers, chip foundries, utilities and traditional industries. This is still largely a hydrogen driven energy business. Cleaner energy? Yes, but you know where I am and I am moving away from that direction.
The Question Is...
...How many more businesses will look to build out or make deals in order to satisfy their demand for energy? Too many to count is the correct answer.
Now the second question is: Which companies can meet that demand long term? I think it's obvious that GE Vernova (GEV) is going to be a long-term winner in this space. That's why I am long the name. I also think that nuclear power is the answer to providing nearly unlimited clean energy at scale. People who read me often know that I am long Oklo (OKLO) for that reason.
I cannot knock Bloom Energy's move. Just look at it, and now it breaks out from an upward sloping trend to the upside. The stock is going to have to trade with a $92 handle at some point though if it is going to fill that newly created gap. At least Bloom Energy does have revenue. My pick does not as of yet. That said, the stock is breaking out from that potential double-top pattern of bearish reversal that I showed you last week.
That said, who do you think is really going to supply corporate America with energy going forward? You know my opinion. Take a look at this:
OKLO just smashed through the $169 target price. Do a lot of other guys give you accurate target prices and how to adjust when reached? Funny thing, Bloom Energy is now up 23% on its own deal. OKLO is up 16% on Bloom's deal because of what it implies. That's impressive.
Oklo Inc (OKLO)
Target Price: $191 (up from $169)
Pivot: $147
Add: Down to 21-day EMA (now $125)
Panic: Loss of 50-day SMA (currently $95) or 8% loss
At the time of publication, Guilfoyle was long GEV and OKLO equity.
