Why Cameco Stock Blasted Nearly 26% Higher Last Month

June was a fine month to be invested in uranium miner and nu energy services specialist Cameco (CCJ 2

Nu received a significant boost from the Trump administration's One, Big, Beautiful Bill, which curbed subsidies and other advantages for ducers harnessing rival energy sources

Developments elsewhere in the nu space also helped lift its stock

Big and beautiful for the nu industry The saga of Trump's bill didn't end until the president signed it into law in early July

Before that, however, it engendered controversy in several drafts by effectively bringing forward the expiration dates of federal subsidies that supported ducers in the renewables segment, mainly solar and wind

Such measures survived, albeit in more limited form, in the final, passed legislation

Image source: Getty Images

Notably, nu energy emerged largely unscathed, as its subsidy regime was mostly unchanged

While lawmakers were in the early argument (whoops, discussion) and debate stages of the bill, the nu energy got a little power surge from a deal engineered between the industry's Constellation Energy and social media giant Meta Platforms, owner of Facebook, Instagram, and WhatsApp

Under the terms of the arrangement, Constellation will supply Meta's server farms with over 1. 1 gigawatts of energy from its Clinton Clean Energy Center nu plant in Illinois

The term of the deal, which is to kick in next June, is 20 years

This should sound familiar to nu energy watchers and Constellation investors, as it has some of the dimensions of the deal struck between Constellation and another titan, Microsoft

The pair signed a contract for the former to vide the latter with power from the once-notorious Three Mile Island nu plant in Pennsylvania

Cameco was not directly involved in the Constellation/Meta agreement, but of course, as with that monster piece of legislation, any win for one nu company represents a victory for the sector as a whole -- at least as far as Mr

A good direct investment One development that did directly affect Cameco was early June's news a company it partially owns, privately held nu power company Westinghouse Electric

Cameco said it expects an increase of roughly $170 million in additional non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for both Westinghouse's second quarter and the full year 2025

Cameco, which holds a 49% stake in Westinghouse, anticipates that the higher EBITDA will "be taken into consideration" when the latter determines the 2025 distribution it'll pay the former

So in short, Cameco is benefiting from top-down legislative developments, the rising ity of nu power, and the operations of an important investment

It's no wonder investors were so energized by its stock last month

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors

Eric Volkman has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft

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