Constellation Energy Corporation (NASDAQ: CEG) ended Wednesday, December 17, 2025 with a sharp selloff during regular trading—then bounced in after-hours action as late-breaking grid-market headlines hit the tape.
CEG closed the session at $340.97, down 6.74%, after trading between $372.00 (high) and $334.18 (low) on volume of roughly 4.57 million shares. [1]
In after-hours trading, CEG was quoted around $348.58 (+2.23%) as of 6:13 p.m. ET. [2]
For investors waking up ahead of the Thursday, Dec. 18 open, the message is clear: this stock is being driven by two forces at once—AI/data-center sentiment (a near-term trading driver) and power-market fundamentals (a longer-duration earnings driver). Here’s what matters most before the bell.
After-hours snapshot: what the tape said today
- Close (4:00 p.m. ET): $340.97 (–6.74%) [3]
- Day range: $372.00 / $334.18 [4]
- After-hours (as of ~6:13 p.m. ET): ~$348.58 (+2.23%) [5]
That after-hours bounce matters because it suggests dip-buying (or short-covering) showed up quickly once investors had more time to digest power-market news released after the cash session.
Why Constellation Energy stock dropped during the regular session
Today’s move in CEG didn’t happen in isolation. The broader market narrative was a renewed wobble in “AI trade” stocks—and importantly, the second-order winners that had been priced as AI infrastructure beneficiaries, including power and grid names.
The Associated Press described Wednesday as Wall Street’s worst day in nearly a month, driven by another leg down in AI-linked stocks, and noted that power companies tied to data-center electricity demand also slid, including Constellation Energy (down about 6.7%). [6]
One catalyst that reverberated through both tech and “power-for-AI” names: a report that Oracle’s funding partner Blue Owl Capital was not funding Oracle’s latest AI data-center project, which pressured Oracle shares and helped sour sentiment around AI capex and the infrastructure buildout. [7]
Barron’s also framed the broader spillover: when markets question the pace and durability of AI buildouts, the selling can hit not only chip and cloud names but also electricity and power-generation plays that had been positioned as indirect beneficiaries. [8]
How this connects to CEG: Constellation has become a bellwether “clean, firm power” story inside the AI narrative, because large data centers increasingly want round-the-clock, low-carbon power contracts. When traders de-risk that AI theme, CEG can trade less like a defensive utility and more like a high-beta infrastructure proxy—especially after a strong run earlier in the year.
The after-hours stabilizer: PJM capacity auction headlines hit after 4 p.m.
A key reason CEG often reacts after-hours in December: PJM’s capacity auction timeline. PJM has said results for the 2027/2028 delivery year would be reported on Dec. 17 after 4 p.m. Eastern. [9]
And the results were striking.
Barron’s reported that the PJM auction for 2027–2028 cleared at $333.44 per megawatt-day, the highest allowable price, and highlighted two major takeaways:
- Record-high capacity prices (good for generators’ potential capacity revenues), and
- A reliability shortfall—PJM did not obtain enough capacity to meet its reliability requirement, falling short by 6.6 gigawatts, raising political and regulatory scrutiny risk. [10]
Why PJM matters specifically to Constellation Energy (CEG)
Constellation is a major generator in PJM’s footprint, so higher capacity prices can be supportive of forward earnings power—particularly for assets that clear at attractive capacity revenues.
TipRanks reported today that Constellation said all of its PJM power plants cleared the 2027–2028 auction, with results taking effect June 1, 2027, and noted the potential relevance of capacity revenues to certain tax-credit calculations. [11]
The key nuance for tomorrow: record prices are supportive for generator economics, but the same headlines also amplify the risk of a policy backlash (because higher capacity costs ultimately flow through to consumers over time). Barron’s explicitly flagged that political pressure could build to curb capacity payments as bills rise. [12]
Today’s analyst call: UBS raises target to $420
Against that volatile backdrop, today also brought a clean, stock-specific headline: UBS raised its price target on CEG to $420 and maintained a Buy rating, per GuruFocus’ summary of the note. [13]
GuruFocus also noted that recent analyst price targets cited in its roundup span a wide range (roughly high-$300s to high-$400s), underscoring how polarized the valuation debate can be on a stock whose bull case relies heavily on forward power-price structure, contract wins, and AI-driven demand growth. [14]
What to do with this tomorrow morning: Watch whether other desks follow with revisions after the PJM print and today’s sector-wide risk-off move. In fast-moving “theme” stocks, clusters of price-target updates can become their own catalyst.
Fresh context investors are still digesting: nuclear license extensions
While your focus is “after the bell today,” one of the most important near-term fundamentals for CEG actually hit just before today: Reuters reported on Dec. 16 that Constellation secured 20-year operating license extensions for two nuclear plants in Illinois (Clinton and Dresden units), extending their operating lives. [15]
License runway matters because CEG’s core value proposition is its fleet of long-lived nuclear assets—exactly the kind of “firm, clean” generation that hyperscalers and industrials increasingly seek for long-duration power contracting.
Another near-term catalyst to keep on the radar: Calpine deal closing mechanics
This isn’t a “today” headline—but it’s very much a “before the next open(s)” variable.
Constellation said earlier this month it reached a resolution with the U.S. Department of Justice that clears the way for its Calpine transaction, and noted the deal had been approved by FERC subject to divestitures. [16]
The DOJ’s own release described required divestitures tied to competitive concerns in generation markets. [17]
Why it matters before Thursday’s open: If Constellation drops any incremental filing, closing update, or divestiture timing clarity, it can quickly reshape the market’s near-term framework for leverage, free cash flow, and forward earnings power—especially after a volatile tape.
What to watch before the stock market opens Thursday, Dec. 18, 2025
Here are the practical checkpoints for the premarket (and the first 30 minutes after the open) if you’re tracking CEG:
1) Does after-hours strength hold into premarket?
CEG showed an after-hours rebound to roughly $348–$349 early this evening. [18]
If futures are weak or AI headlines worsen overnight, that bounce can fade quickly. If risk tone improves, the market may treat today’s drop as an “AI proxy washout” rather than a company-specific break.
2) Overnight AI capex headlines (Oracle/financing narrative)
The Oracle/Blue Owl funding story was one of today’s sentiment shocks. [19]
Because CEG is widely viewed as a “powering AI” beneficiary, incremental negative (or positive) news on data-center financing can leak directly into CEG’s premarket price discovery.
3) PJM auction follow-through and political reaction risk
The PJM result is supportive for generators on economics, but it also invites scrutiny because of bill impacts and reliability concerns. [20]
If more commentary emerges overnight from regulators, state officials, or consumer advocates, the market may start pricing a higher probability of future rule changes—especially if headlines emphasize affordability.
4) Macro data at 8:30 a.m. ET: CPI, plus other high-frequency releases
Thursday morning includes the Consumer Price Index (CPI) for November 2025 at 8:30 a.m. ET, according to the BLS release schedule. [21]
The New York Fed’s economic calendar also lists CPI and the Philadelphia Fed Manufacturing Survey for Dec. 18. [22]
And initial jobless claims are scheduled for release on Dec. 18 (tracked via FRED’s release calendar for initial claims). [23]
Why CEG traders should care: CPI can move Treasury yields and equity risk appetite quickly—often impacting high-momentum thematic names (including “AI power” proxies) even when their long-term fundamentals are unchanged. Reuters’ market column also flagged U.S. inflation data on Thursday as a key potential market mover. [24]
5) Key price zones from today’s trading (levels traders will talk about)
Not investment advice—just what stands out from today’s tape:
- Near-term support: today’s low around $334 [25]
- First rebound zone: the $348–$350 area (after-hours quotes) [26]
- Near-term resistance: today’s high around $372 [27]
If CEG opens below $340, markets may read the after-hours bounce as “temporary relief.” If it opens above ~$350, the narrative can quickly shift to “buyers defended the AI-power trade.”
The bigger picture for CEG: why the stock remains in the spotlight
Constellation has been positioned as a critical supplier for a grid under strain from electrification and data-center growth. Barron’s has described the company’s strategy around AI data-center power needs and highlighted the scale of its nuclear fleet as a central advantage. [28]
At the same time, today was a reminder that in the short run, CEG can trade on headlines that have little to do with next quarter’s execution—especially when those headlines hit the AI buildout narrative.
Bottom line before Thursday’s open
CEG is closing the day with a split tape: a steep regular-session drop driven by AI-related risk-off sentiment, followed by an after-hours rebound as PJM capacity-market headlines landed and buyers stepped in.
The two questions that matter most into Thursday morning are:
- Is today’s move just “theme volatility,” or the start of a broader de-rating in AI-adjacent infrastructure trades? [29]
- Will record PJM capacity prices ultimately be viewed as an earnings tailwind—or as a political/regulatory risk that caps upside? [30]
References
1. stockanalysis.com, 2. stockanalysis.com, 3. stockanalysis.com, 4. stockanalysis.com, 5. stockanalysis.com, 6. apnews.com, 7. www.reuters.com, 8. www.barrons.com, 9. insidelines.pjm.com, 10. www.barrons.com, 11. www.tipranks.com, 12. www.barrons.com, 13. www.gurufocus.com, 14. www.gurufocus.com, 15. www.reuters.com, 16. www.constellationenergy.com, 17. www.justice.gov, 18. stockanalysis.com, 19. www.reuters.com, 20. www.barrons.com, 21. www.bls.gov, 22. www.newyorkfed.org, 23. fred.stlouisfed.org, 24. www.reuters.com, 25. stockanalysis.com, 26. stockanalysis.com, 27. stockanalysis.com, 28. www.barrons.com, 29. apnews.com, 30. www.barrons.com
