Constellation Energy Stock Skyrockets: Here’s Why Traders Are Piling In

Energy sector gets jolted as Constellation shares surge—traders spot massive upside potential in traditional energy's crypto pivot.

Power Play

Constellation's recent moves into blockchain-based energy trading and Bitcoin mining partnerships sent shockwaves through Wall Street. The stock's rally mirrors what we've seen in crypto bull runs—institutional money chasing disruptive tech.

Green Energy Meets Digital Gold

While legacy analysts scratch their heads about valuation metrics, crypto natives recognize the pattern: infrastructure plays poised to bridge traditional finance with decentralized networks always pump first, ask questions later.

Meanwhile in crypto-land... Bitcoin miners are already positioning this as validation that energy companies finally 'get it'—though let's be real, most energy execs still think 'HODL' is a typo.

Image source: Getty Images.

What Oracle said last night

Oracle actually missed on its earnings report last night, reporting a $1.47-per-share profit when analysts wanted to see $1.48 -- but no matter. Today all investors are talking about is Oracle CEO Safra Catz's prediction that "Oracle Cloud Infrastructure revenue [will] grow 77% to $18 billion this fiscal year -- and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years."

That's about 14-fold growth over a five-year time span, all fueled by demand for AI services from Oracle, and all contributing to demand for electricity to keep the AI momentum going. Investors are extrapolating from this thesis that demand for nuclear power from Constellation Energy must grow in tandem with demand for AI services from Oracle.

Is Constellation Energy stock a buy?

This, in a nutshell, is why investors are buying Constellation Energy stock this morning, but here's the thing:

Oracle's CEO may be promising 14-fold growth in five years, but analysts polled by S&P Global Market Intelligence don't expect Constellation to grow much faster than 14% annually over that time period. At 32.5 times earnings, that means Constellation stock has a price/earnings-to-growth (PEG) ratio of 2.3.

That's too rich for my blood. Constellation stock is a sell.