Constellation Energy Stock Surges on Amazon Nuclear Power Deal

Constellation Energy Corporation (CEG) shares surged by 11.64% on October 6, 2026, following a significant power purchase agreement with Amazon. The 20-year deal involves a $3 billion investment at the Calvert Cliffs nuclear plant, including a 190 MW uprate, and ensures long-term, emissions-free energy supply for Amazon. This agreement has bolstered investor confidence in CEG's growth prospects and locked-in revenue streams.

The Federal Energy Regulatory Commission's (FERC) decision to delay PJM’s Reliability Backstop Procurement plan until 2027 introduced some regulatory uncertainty, which briefly impacted CEG's stock. However, analysts remain optimistic about the company's long-term outlook. BMO Capital reduced its price target to $350 from $379 but maintained an Outperform rating, citing the strategic Amazon contract and CEG's carbon-free strength. Scotiabank also lowered its target to $355 from $441, but the average Street target of approximately $345.63 still indicates substantial upside from the current stock price of around $257.

Fundamentally, CEG has shown strong financial performance with revenue of $25.53 billion, a 79.8% gross margin, and a 27.6% EBITDA margin. The company's low leverage and solid returns on equity further support its premium valuation. Traders are focusing on the $290, $295 range as first support, with $310, $315 as near-term resistance, reflecting strong demand and potential profit-taking.

The Amazon deal positions CEG as a key supplier of zero-carbon power for large corporate buyers, reinforcing its strategic role in the decarbonizing grid. Despite regulatory risks, the long-term benefits of the agreement are expected to drive future value, making CEG a compelling watch for active traders.