Should You Buy Fervo Energy While It's Below $30?

Fervo Energy (NASDAQ: FRVO) launched with its initial public offering in May and shot out of the gate like gangbusters. Fervo priced its IPO at $27, but opened closer to $35 after the offering was upsized due to strong demand. The company raised $2.2 billion, and shares quickly topped the $40 mark. It's been a struggle ever since. Fervo stock fell steadily after that upsized offering, dipping all the way to $15 before it received a huge catalyst on Sept. 1 -- the announcement that it had signed a power purchase agreement with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) for 396 megawatts of carbon-free electricity to operate a data center in Utah. It's the largest agreement for enhanced geothermal power on record. Shares of Fervo stock jumped 25% on Sept. 1 to nearly $20. With analyst sentiment high, electricity demand increasing, and Fervo holding more than 50 gigawatts of development in its pipeline, shares may be sharply undervalued right now.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool