NuScale's Revenue Plunged 99% Last Quarter, But the Stock Has Gained 1% So Far. Here's What Investors Need to Know.
NuScale's second-quarter looks bad. So why is the stock rising?
Overview
Yesterday, Aug. 5, NuScale Power (NYSE:SMR) reported what, on the surface, looked like a brutal quarter. Its net loss came in at about $50 million, while its second-quarter revenue sank 99%, from roughly $8 million reported a year ago to about $75,000. It’s the kind of quarterly report that can sink a stock at market open.
And yet, as of this writing at about 10:45 a.m. ET, NuScale was up nearly 1%.
Details
What kind of wizardry sends a nuclear energy stock higher after a revenue collapse of nearly 99%? None, really. Truth be told, it’s a reflection of a company whose value has almost nothing to do with what it earns today. And, despite the ugly losses, NuScale gave investors reasons to keep believing in its future business. Let’s take a look.
Source
Originally published at www.fool.com.