Kerrisdale Capital Questions Valuation of Oklo Inc.

Kerrisdale Capital has recently released a critical report questioning the valuation of nuclear company Oklo Inc. The short-selling firm expressed skepticism about virtually every aspect of Oklo’s investment case. Oklo, a nuclear startup backed by Sam Altman, went public in May through a SPAC merger with Altman’s AltC Acquisition Corp. The company’s shares have seen a significant increase of about 185% in the last three months, driven by the growing optimism around nuclear power as big tech companies engage in partnerships with nuclear startups to address the rising energy demands of data centers.

Kerrisdale Capital believes that the recent surge in Oklo’s share price is primarily driven by retail investors, as the company is seen as a “story stock” without expected revenue for several years. The short seller also expressed concerns about Oklo’s timelines and projections. Oklo intends to submit a license application to the Nuclear Regulatory Commission in 2025 and aims to achieve its first nuclear deployment by late 2027. However, Kerrisdale claims that a former NRC commissioner they spoke to finds these timelines to be overly optimistic, suggesting that obtaining a license would likely take at least four years.

Furthermore, a former employee of Oklo allegedly informed Kerrisdale that the company’s senior management team lacks experience. The short seller also criticized Oklo’s fuel cost assumptions, deeming them “outlandish” in their forecasts, and accused the company of underestimating its projections by a factor of five.

While Kerrisdale’s report raises valid concerns about Oklo’s valuation and operations, it is essential to consider both sides of the argument. Oklo has yet to respond to the report, but it remains to be seen how this will impact investors’ confidence in the nuclear startup.

At the time of publication, Oklo shares were down 3.35% at $21.07. As always, it is essential for investors to conduct thorough research and analysis before making any investment decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.

Frequently Asked Questions (FAQs) based on the article:

Q1: What is the recent report released by Kerrisdale Capital about?
A1: Kerrisdale Capital released a critical report questioning the valuation of nuclear company Oklo Inc.

Q2: What is Oklo?
A2: Oklo is a nuclear startup backed by Sam Altman that recently went public through a SPAC merger with Altman’s AltC Acquisition Corp.

Q3: How have Oklo’s shares performed in the last three months?
A3: Oklo’s shares have seen a significant increase of about 185% in the last three months.

Q4: What has been driving the increase in Oklo’s share price?
A4: The increase in Oklo’s share price has been driven by the growing optimism around nuclear power, as big tech companies engage in partnerships with nuclear startups to address the rising energy demands of data centers.

Q5: Who does Kerrisdale Capital believe is driving the recent surge in Oklo’s share price?
A5: Kerrisdale Capital believes that the recent surge in Oklo’s share price is primarily driven by retail investors.

Q6: What concerns does Kerrisdale Capital express about Oklo’s timelines and projections?
A6: Kerrisdale Capital claims that Oklo’s timelines and projections are overly optimistic and that obtaining a license from the Nuclear Regulatory Commission would likely take at least four years.

Q7: What concerns does Kerrisdale Capital express about Oklo’s senior management team?
A7: Kerrisdale Capital alleges that a former employee of Oklo informed them that the company’s senior management team lacks experience.

Q8: How does Kerrisdale Capital criticize Oklo’s fuel cost assumptions?
A8: Kerrisdale Capital deems Oklo’s fuel cost assumptions “outlandish” in their forecasts and accuses the company of underestimating its projections by a factor of five.

Q9: Has Oklo responded to Kerrisdale’s report?
A9: Oklo has yet to respond to Kerrisdale’s report.

Definitions:

1. SPAC: Special Purpose Acquisition Company – A company formed for the sole purpose of raising capital through an initial public offering (IPO) with the intent to acquire an existing company.

2. License application: The process of submitting an application to obtain permission or authorization from a regulatory body, such as the Nuclear Regulatory Commission, to engage in a specific activity.

3. Nuclear Regulatory Commission (NRC): An independent agency of the United States government that regulates civilian use of nuclear materials to ensure public health and safety, promote the common defense and security, and protect the environment.

Suggested Related Links:

1. kerrisdalecap.com – Official website of Kerrisdale Capital.
2. oklo.com – Official website of Oklo Inc.

BySeweryn Dominsky

Seweryn Dominsky is a leading voice in the exploration of new technologies and fintech innovations. With a solid foundation in finance and technology, he earned his degree from the University of Virginia, where he developed a keen understanding of the intersection between financial systems and emerging technologies. Following his academic pursuits, Seweryn honed his expertise at Insight Partners, a prominent investment firm, where he contributed to analyses on technological advancements in the financial sector. His work has been featured in various industry publications, allowing him to share insights on the transformative impact of fintech. Through his writing, Seweryn aims to bridge the gap between complex technological concepts and practical applications for businesses and consumers alike.