NuScale (SMR) Drops 8% on Capital Hike Plan

We recently published 10 Big Names Investors Are Dumping. NuScale Power Corp. (NYSE:SMR) is one of the worst performers on Wednesday.

NuScale Power extended its losing streak to a fourth consecutive day on Wednesday, shedding 8.12 percent to close at $15.73 apiece as investors unloaded portfolios on news that it was increasing its authorized capital stock by nearly double.

In a regulatory filing on the same day, NuScale Power Corp. (NYSE:SMR) said that it sought the approval of the Secretary of State of the State of Delaware for its plan to raise its authorized capital stock to 662 million shares with a par value of $0.0001 apiece, from 332 million at present.

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The drop, on the other hand, was primarily dragged by concerns about the potential impact of new share issuance on NuScale Power Corp.’s (NYSE:SMR) current shareholders.

The plan has already been approved by the Board of Directors during a special meeting on Tuesday, December 16.

NuScale Power Corp. (NYSE:SMR) also mirrored a broader market pessimism, as investors disposed of shares in companies riding the wave, including energy firms.

In the third quarter of the year, NuScale Power Corp. (NYSE:SMR) expanded its net loss attributable to shareholders by 1,470 percent to $273 million from $17 million in the same period last year.

Revenues, on the other hand, increased by 1,635 percent to $8.2 million from only $475,000 year-on-year.

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While we acknowledge the risk and 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 more promising than SMR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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