Why Shares of Nano Nuclear Energy Stock Sank This Week
Nano Nuclear Energy filed six patents for its microreactor technology.
The company raised more funds in a private placement offering.
Nano is far from generating revenue and is a company investors should stay away from right now.
10 stocks we like better than Nano Nuclear Energy ›
Shares of Nano Nuclear Energy (NASDAQ: NNE) sank 16% this week, according to data from S&P Global Market Intelligence. The nuclear energy start-up closed a private placement offering of common stock that will dilute shareholders, leading the stock to fall. Shares of the pre-revenue company are up 26% this year and up 500% since going public around one year ago.
Here's why Nano Nuclear Energy stock was sinking this week, and whether the stock is a buy now.
Nano Nuclear Energy wants to build -- as the name implies -- tiny and portable micro nuclear reactors. It filed six patents this week related to its proposed Zeus Microreactor, which is still in development from its engineering team.
While patents may indicate a positive move for the stock, Nano Nuclear sank this week because of the pricing of its private placement stock offering to professional investors. Nano Nuclear sold shares of its common stock at a price of $27, which is below its current price of $30 and likely built some selling pressure on shares this week. Indeed, $105 million was raised in the offering, which covers many years of its current cash burn of $10.5 million a year.
The company needs the cash, because it does not have a working product yet. It is working on a micro reactor that has never been built before, and it is unclear if the technology will work. Shares outstanding have consistently climbed as Nano Nuclear has been in the public markets because of its capital needs, which will dilute long-term shareholder returns.
It is easy to decide whether an investor should buy Nano Nuclear stock. The company does not think it will have a product until 2030 or later -- and that is if it can even get the technology to work. It generates zero revenue today and will burn money for many years into the future. These are not good stocks to invest in.
An individual can hope that Nano Nuclear does well and invents a new way of electricity generation to better society. But hope is not an investment strategy. Smart investors will keep Nano Nuclear stock out of their portfolios because of how high risk this investment is. Don't look at the 500% returns and expect the future to look like the past -- this is a science project with a stock price attached to it.
Before you buy stock in Nano Nuclear Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nano Nuclear Energy 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!*
Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Shares of Nano Nuclear Energy Stock Sank This Week was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
34 minutes ago
- Yahoo
Vertex (VRTX) Stock PT Lowered to $420 on slower Alyftrek Uptake
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is one of the 10 biotech stocks screaming a buy. On June 17, RBC Capital reiterated a Sector Perform rating on the stock but cut the price target to $420 from $423. The adjustment is in response to the company confirming gradual patient conversion from Trikafta to the company's next-generation cystic fibrosis treatment, Alyftrek. A research team in lab coats testing a new ImmunoPhage platform in a modern biotechnology lab. RBC Capital remains concerned about the gradual conversion compared to consensus expectations. Consequently, it has warned it could affect the company's operating margins by up to 2%. Nevertheless, the research firm insists that the company's cystic fibrosis franchise remains well-insulated from sector headwinds. However, RBC Capital has reiterated that Vertex could require stronger execution to adopt Alyftrek to justify the current valuation in the market. Consequently, its reduced price target reflects lower year Alyftrek conversion rates. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that develops and commercializes therapies for serious diseases. They are known for their work in cystic fibrosis (CF) and are expanding into other areas like cell and genetic therapies. While we acknowledge the potential of VRTX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Best Software Stocks to Buy Now and 11 Must-Buy AI Stocks Analysts Are Betting On. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
44 minutes ago
- Yahoo
Wolfe Research Initiates Coverage of BridgeBio Pharma (BBIO) with ‘Outperform' Rating
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is one of the 10 biotech stocks screaming a buy. On June 17, Wolfe Research initiated coverage of the stock with an 'Outperform' rating and a $49 price target. The research firm reiterated the company's solid position amid the 'TTR craze' while also echoing its commercial execution strategy. A medical technician wearing a lab coat operating machinery in a biopharmaceutical laboratory. Consequently, Wolfe Research expects BridegBio's revenue to total $569 million in 2025 before rising to $3.4 billion by 2028. It should peak at $4.4 billion in 2034. For the upcoming second quarter, the research firm expects the company to deliver revenue of $106 million, slightly below market expectation of $111 million. While the stock has shown a remarkable return of 42% year to date, Wolfe Research insists it must navigate several challenges to maintain the positive momentum. It must navigate the potential Vyndaqel loss of exclusivity, achondroplasia data versus competition, and pipeline products. In addition, consistent revenue growth and expanding operating margins will be crucial to the company's long-term success. BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a biopharmaceutical company that develops and delivers transformative medicines for genetic diseases. Its pipeline includes a range of development programs, from early science to advanced clinical trials. While we acknowledge the potential of BBIO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Best Software Stocks to Buy Now and 11 Must-Buy AI Stocks Analysts Are Betting On. Disclosure: None. Sign in to access your portfolio
Yahoo
44 minutes ago
- Yahoo
Acadia Pharmaceuticals (ACAD) Conducts Inducement Awards to Attract and Retain Top Talent
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is one of the 10 biotech stocks screaming a buy. On June 17, the company moved to attract and retain top talent by granting inducement awards to 41 employees. Under the 2024 Inducement Plan, the company will award the employees non-qualified stock options of 187,664 shares and 89.582 restricted stock units designed to attract and retain talent. A pharmacist in a pharmacy preparing a prescription medication for a patient suffering from Fibromyalgia. The move to offer inducement awards is part of Acadia Pharmaceuticals' push to secure top-skilled professionals essential for its neuroscience projects. It expects the awards to ensure employees are incentivized to contribute to the long-term objectives expected to lead to sustained growth and innovation. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharma company dedicated to advancing treatments for central nervous system disorders and rare diseases. Its key products include NUPLAZID, approved for Parkinson's disease psychosis, and DAYBUE. While we acknowledge the potential of ACAD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Best Software Stocks to Buy Now and 11 Must-Buy AI Stocks Analysts Are Betting On. Disclosure: None. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
