Yabba Dabba DOWNSGRADE! Citi Says Constellation Energy Deal Ain't All That!

Great Gazoo! What's the Holdup?

Yabba Dabba Doo! Fred Flinstone here reporting live from beautiful downtown Bedrock! Now usually I'm busy dodging dinosaurs and trying to keep Barney Rubble from borrowing my bowling ball. But today I gotta talk about somethin' serious: this Constellation Energy deal with Meta. You know Meta? The folks makin' those weird lookin' Oculus things Wilma keeps talkin' about. Turns out they made a deal to buy a bunch of power from a nuke plant in Illinois. Sounds good right? Keep the lights on keep the Great Gazoo happy. But Citi some smarty pants folks in pointy hats they’re sayin' it ain't all that.

Dino Sized Disappointment?

So here's the gist. Constellation stock went up a bit then kinda fizzled out like a bad batch of Dino burgers. Citi downgraded 'em which means they don't think the stock's gonna skyrocket like a pterodactyl takin' off. They're sayin' Meta is gonna pay 'em a fair price for the power but not a 'holy smokes I'm gonna be rich' price. Around $75 to $90 per megawatt hour those Citi fellas reckon which is apparently 'not a big premium for low carbon power' and in line with new gas plants.

The Bedrock Bottom Line?

Now I ain't no fancy financial fella but even I know that if everyone thought tech companies would be throwin' rocks of money at nuke plants for zero carbon power. Apparently this deal with Meta is gonna stop the tech sector from makin' anymore big deals with those power plants. It extends the power for useful nuclear plants but doesn't give 'em any above market value.

Hold On To Your Club!

The big brains on Wall Street thought these tech giants were gonna pay extra for power but these analysts like Don Bilson are now saying that this may be a new market price that the Constellation plants at Dresden Nine Mile Point Unit 1 and Ginna plants will follow. It sounds like others are thinking the same. Other energy producers like NRG Energy Vistra and Talen Energy have actually gained more after the Meta deal.

Microsoft Joins the Party

Believe it or not Constellation also made a deal with Microsoft to bring a nuke plant back online in a few years! So they're keepin' busy. But the buzz around Bedrock is the analysts who thought this could be a 'windfall' for Constellation is less likely.

Yabba Dabba Doo...or Don't?

So what does this all mean for you my fellow Bedrockians? Well if you're holdin' Constellation stock maybe don't go buildin' that extra large pool just yet. But hey who knows? Maybe this whole thing will turn out better than expected. After all stranger things have happened in Bedrock! Just ask me about the time I accidentally invented the automobile. Yabba Dabba Doo!