CEG, why did the stock drop 30 or $40 in the past couple of days?

The stock price of Constellation Energy (CEG) experienced a significant drop of 12.46% on November 4. This decline can be attributed to a combination of factors:

1. Regulatory Challenges: The Federal Energy Regulatory Commission's (FERC) decision to reject a key proposal from Talen Energy has had a ripple effect on Constellation Energy's stock price. The rejected transaction would have enabled Talen Energy to sell additional electricity from its nuclear reactors to an Amazon AI data center. Although this decision does not directly impact Constellation Energy's deal with Microsoft, the similarity in the nature of the projects led to investor concern and comparisons that negatively affected Constellation’s stock.
2. Market Volatility and Regulatory Changes: The broader energy market is subject to volatility and regulatory changes, which can impact the operational stability of companies like Constellation Energy. The rejection of the Talen Energy proposal is just one aspect of this regulatory uncertainty, which contributes to market apprehension and can lead to stock price declines.

In summary, the decline in Constellation Energy's stock price is primarily due to regulatory challenges and market volatility. Investors are sensitive to regulatory changes that could impact the company's future growth and operational stability, leading to a reaction in the stock price.