Why Shares of Oklo Are Powering Down Today

After logging losses at the end of trading on both Monday and Tuesday, Oklo (NYSE: OKLO) stock is continuing to plunge lower today. Oklo bulls who are concerned that the stock's movement reflects the company suffering a major setback in the development of its advanced nuclear reactors will find that this is hardly the case. In fact, there's no news from the company that speaks to the stock's decline.

As of 12:19 p.m. ET, shares of Oklo are down 14.7%.

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Nothing new today, but two days ago...

Instead of company news, the decline in Oklo stock likely stems from growing concerns that shares have gotten ahead of themselves. Since the company isn't generating profits -- or revenue, for that matter -- traditional valuation metrics aren't useful in assessing Oklo stock. But with shares ripping more than 459% higher since the start of the year, investors are suspecting that the market's appetite will wane.

It's a valid viewpoint, and one that seems to be validated by the fact that Cathie Wood-led Ark Invest trimmed its position in Oklo on Monday. The ARK Autonomous Technology & Robotics ETF sold 53,353 shares of Oklo.

Should investors fuel their portfolios with Oklo stock after its pullback?

At this point, investors should be circumspect about buying shares of Oklo, considering their tremendous outperformance. It seems probable that the stock will continue to tumble even further, so those with the stock on their radars may want to watch from the sidelines for the time being.

It's a good thing, though, that there are plenty of other nuclear energy stocks to consider for those eager to gain nuclear energy exposure sooner rather than later.

Scott Levine 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.