The stock is trading up $42.28 (+6.58%) at $684.51. Line slinger Quanta Services is up $26.59 (+5.94%) to $474.23 after earlier hitting a new all-time-high at $477.84. Both reactions seem a bit exuberant but whatev, I'm not the one who hung a $1000 per share price target on GEV.
From Investing.com, January 16:
GE Vernova shares rose 3.7% in pre-market trading Friday after reports that President Trump and governors from PJM Interconnection states will announce plans for an emergency wholesale electricity auction aimed at addressing power reliability and affordability concerns.
The proposed auction would require technology companies to fund new power plants through 15-year contracts, potentially supporting construction of approximately $15 billion worth of new generation capacity, according to a White House official cited by Bloomberg.
The plan, which comes amid rapid data center expansion in the region, includes price caps for two years on future auctions in the PJM grid covering 67 million people across mid-Atlantic and inland states. It would also require new data center operators like Amazon and Google to bear more costs for grid expansion.
Jefferies analysts identified GE Vernova as the "clearest winner" from this development, while also noting positive implications for NRG Energy, PPL Corp, NextEra Energy, Primoris, Quanta, and Williams.
The auction could create 5-7.5 gigawatts of new capacity at $2,000-3,000 per kilowatt, according to Jefferies. The technology choice between peakers and combined cycles would have different implications for energy and capacity prices.
Conversely, incumbent power companies face potential risks, with Constellation Energy shares falling 4.8% and Vistra dropping 3.7% in pre-market trading. Jefferies noted these companies, along with Talen Energy and Capital Power, could face challenges as market intervention increasingly disfavors contracting existing facilities....
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