3. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 120
Mentioning Vistra Corp. (NYSE:VST) during the episode, Cramer commented:
“How about the walloping in the nuclear power utilities like Vistra and Constellation Energy? These stocks are on a rollercoaster and right now they’re on the downside. They, they trade like they weren’t even wearing their seat belts. When you’re going down, which is what you know what happens, you fly up and then you land on your head. Microsoft had a hand in the froth here too, except this time at least it was negative. See these momentum utility stocks, all data center plays won’t be as important if Microsoft’s actually cutting capital expenditures for data centers, which is also what we heard on Friday. Why the heck do we need to bid up the stocks of tangential utilities when maybe we don’t even need to worry about the regular utilities? Maybe they got enough power, of, of course, we don’t need Constellation or Vistra.”
Vistra (NYSE:VST) is a company focused on power generation and electricity supply, serving a wide range of customers across residential, commercial, and industrial sectors. Meridian Hedged Equity Fund stated the following regarding the company in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”
