Aug. 6 at 5:14 PM
$NRG PSA. This is getting crushed because Texas power markets are also getting crushed.
Texas is becoming increasingly less data center-friendly.
It road the coattails of
$VST $TLN and
$CEG to an absurd valuation. This is confirmed by the rise in
$NRG following the release of PJM capacity data.
$VST $TLN and
$CEG are core players in that market and rightfully saw a bump.
$NRG, on the other hand, has just one plant in that market. No fundamental reason whatsoever for it to have appreciated.
Moreover,
$NRG predominately relies on coal power which, while safe under the current administration, could be sent to its grave if the Dems win the White House in 2028. No big data center wants a long term deal with a coal plant for this reason. Too much uncertainty and the conference call confirmed it.
Unfortunately,
$NRG will not be a major beneficiary of the data center revolution and will likely fall another 30-40%. Easy shorty.
