Constellation Energy (CEG) shares shot 25% higher today as the company confirmed its intentions to purchase Calpine
Calpine Corporation is a leading American power generation company specializing in natural gas-fired and geothermal electricity production. The company operates power plants across the U.S., providing reliable, low-carbon energy solutions.
Calpine focuses on sustainability, leveraging advanced technologies and renewable resources to meet energy demands efficiently while contributing to the transition to cleaner power.
Calpine Corporation was listed on the New York Stock Exchange under the ticker symbol "CPN" until 2018. The company was acquired by an affiliate of Energy Capital Partners and other investors, becoming a privately held company.
Constellation Energy’s addition of Calpine expands the company’s renewable energy generation and fits well with the company’s plan to provide power to data centers through private agreements with companies like Microsoft (MSFT) and Amazon (AMZN).
Constellation Energy announced a 20-year power purchase agreement with Microsoft on September 20, 2024 to supply carbon-free energy for Microsoft's data centers.
The deal involves restarting the Unit 1 reactor at the Three Mile Island nuclear plant in Pennsylvania.
Shares of Constellation jumped from $200 to $285 based on the deal with Microsoft. Since then, shares have retreated to the $240 price range. Investors had been more interested in the AI Nuclear Discovery Stocks like Nano Nuclear (NNE) and NuScale Energy (SMR).
Today’s news puts CEG shares back on track as the stock breaks above $300. Moving back to its highs grabs the attention of investors positioning for the AI Nuclear industry to expand rapidly.
Shares of Constellation Energy are trading with a long-term bullish outlook and a price target of $400.
