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Liberty Energy shares fall below $20 after AI power transition costs
UBS estimates the market values Liberty Power Innovations at $2 to $4 per share versus the firm's $14-per-share valuation.
Liberty Energy shares have slid to below $20 after the company disclosed the cost of its pivot from hydraulic fracturing toward on-site power for AI data centers, according to MarketBeat Ratings. The stock recently traded around $19.29.
MarketBeat Ratings said Liberty set a 52-week high of $34.48 in May, but shares fell after Liberty’s July release of second-quarter results and the transition costs. The report notes that despite beating second-quarter estimates for both earnings and revenue, the stock’s reaction was severe.
UBS estimates that the market assigns only about $2 to $4 per share to Liberty Power Innovations, while the firm sees a $14-per-share value, highlighting a wide valuation gap between the company’s legacy operations and its newer power business. MarketBeat Ratings also described analysts as split on how to value the two businesses until a signed power contract materializes.