Constellation tumbles after posting underwhelming guidance, failing to announce new data center deals
AI power trade Constellation Energy tumbled early Tuesday after issuing an investor day update the market seemed to find unsatisfactory.
The company introduced full-year 2026 operating earnings guidance of between $11 and $12 a share, the midpoint of which is shy of consensus expectations for $11.73, according to FactSet.
Over at Barron’s, Avi Salzman suggested that the company’s failure to unveil any new data center deals as part of the festivities is also adding the the sell-off. He wrote:
“Constellation CEO Joe Dominguez said at the event that he anticipates signing major new deals to provide power to tech companies, but doesn’t want to announce anything too early given the increasing spotlight on data centers today and some changing regulations.
‘I recognize that the last time we spoke, I indicated that we expected to be done with an important transaction by this call, but we’re not ready to announce anything today,’ Dominguez said.
‘There is clearly more scrutiny on data center development,’ he added.”
It’s clear that growing public pushback on data centers is becoming a limiting factor in the AI investment binge.
Over at Barron’s, Avi Salzman suggested that the company’s failure to unveil any new data center deals as part of the festivities is also adding the the sell-off. He wrote:
“Constellation CEO Joe Dominguez said at the event that he anticipates signing major new deals to provide power to tech companies, but doesn’t want to announce anything too early given the increasing spotlight on data centers today and some changing regulations.
‘I recognize that the last time we spoke, I indicated that we expected to be done with an important transaction by this call, but we’re not ready to announce anything today,’ Dominguez said.
‘There is clearly more scrutiny on data center development,’ he added.”
It’s clear that growing public pushback on data centers is becoming a limiting factor in the AI investment binge.
