Oklo Stock Jumped Today: Should You Buy Before Earnings?

After a subdued week, shares of Oklo (NYSE: OKLO) popped 10% in early Tuesday morning trade as investors braced for the company's earnings coming up at 5 p.m. today. While the nuclear energy stock retreated from those highs as the day progressed, it still traded in the green, up around 3% as of 1:30 p.m. ET Tuesday.

Two major announcements just ahead of earnings have provided fresh momentum, and this latest development gives investors a compelling reason to pay close attention to Oklo's upcoming numbers and tune into its earnings conference call.

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What happened with Oklo stock today?

Oklo has gained popularity for its fast-fission nuclear power plants called Aurora, which will produce clean energy that it can eventually sell. Oklo is part of several Department of Energy (DOE) programs. On Tuesday, the DOE approved the Nuclear Safety Design Agreement (NSDA) for Oklo's first reactor at the Idaho National Laboratory (INL) under DOE's reactor pilot program.

With this agreement, the Aurora powerhouse enters the next phase of execution, taking Oklo one step closer to deploying its first-ever nuclear power plant.

At the same time, the U.S. government is backing efforts to boost national energy security, including the recycling of used nuclear fuel into isotopes that are used for medical research, cancer diagnosis, and other treatments.

On Tuesday, the Nuclear Regulatory Commission (NRC) granted Oklo's subsidiary, Atomic Alchemy, its first-ever materials license, officially allowing the company to begin receiving used fuel and processing it into high-value radioisotopes.

Again, this is a major milestone as fuel recycling could eventually create a major revenue stream for Oklo alongside its power business.

Not surprisingly, investor excitement spiked on Tuesday after these announcements and Oklo stock surged, especially since Oklo is also all set to announce its fourth-quarter and full-year 2025 numbers later this evening.

Should you buy Oklo stock now?

There are two main things to look for in Oklo's earnings.

First, when will Okla actually start generating revenue? Investors should look for any updates on the expected timeline for the initial isotope processing and the deployment of its first Aurora reactor. This will be the biggest catalyst for the stock. Second is Oklo's cash position and strategy to secure future capital to build reactors and recycling facilities.

Analysts at Texas Capital Securities reiterated their buy rating and $138 price target for Oklo stock following Tuesday's announcements. That implies a whopping 130% upside from Oklo stock's Monday closing price of $59.69 per share.

While it's hard to say whether Oklo stock can double over the next year or so, it could resume its northward journey if management can show investors a clear path to commercial success later this evening.

Neha Chamaria 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.