Why NuScale Power Corporation (SMR) Went Down Last Week

We recently compiled a list of the 10 Stocks That Underperformed Last Week. In this article, we are going to take a look at where NuScale Power Corporation (NYSE:SMR) stands against the other stocks.

Wall Street’s main indices ended in a bloodbath on Friday, as investors soured on a flurry of macroeconomic factors such as concerns over a slowing economy and a sticky inflation that tempered buying appetite.

Friday’s finish saw the Dow Jones decline by 1.69 percent, the S&P drop by 1.71 percent, and the tech-heavy Nasdaq nosedive by 2.20 percent.

Ten companies, in particular, were heavily hit, registering mostly double-digit losses on a week-on-week basis.

We have listed 10 names that performed poorly last week and detailed the reasons behind their declines. Please note that shares performances were based on the companies’ closing prices last Friday, February 21, as against their prices on February 14, or a week earlier.

To come up with last week’s biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A Nuclear power plant with all its safety & security protocols in place.

NuScale Power Corporation (NYSE:SMR)

NuScale Power Corporation (NYSE:SMR) dropped its share prices by 17.5 percent week-on-week—the second consecutive week of decline—ending Friday’s trading at $19.04 each versus the $23.08 registered on February 14, and the $25.84 price on February 7 amid the lack of fresh catalysts to spark buying appetite, while also digesting news of budget cuts in the Department of Energy.

Last week, DOE spokesperson Ben Dietderich told Fox News that they slashed the agency’s budget by over $124 million, “from millions of dollars of DEI contracts to ridiculously expensive multi-million-dollar Politico news subscriptions.”

He signaled that more budget cuts are expected to occur in the coming months.

The news was particularly relevant for energy companies as budget cuts in the agency could potentially derail the development of energy programs, particularly research and development and loan programs offered by the department.

Overall SMR ranks 6th on our list of the stocks that underperformed last week. While we acknowledge the potential of SMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SMR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.