Fervo Energy Soars on 28% Surge After Landing Major Google Power Deal
Fervo Energy's stock price surged 28% on September 1 after announcing a major power purchase agreement with Alphabet's Google. The company closed at $19.75 per share, trading over 35 million shares, which is significantly higher than its three-month average of 3.7 million shares.
The 396-megawatt deal between Fervo Energy and Google will provide visibility into potential revenue for years to come from a top-tier customer. Google will also have the option to expand the deal by 600 megawatts, bringing it to nearly 1 gigawatt in 2030.
Fervo's projects are still in progress, and investors need to note that volatility is unavoidable in this virtually pre-revenue stock, especially as it will be under pressure to supply the amount of power needed in just a few years. The Motley Fool Stock Advisor analyst team did not recommend Fervo Energy shares for investment.