Why ChargePoint Stock Is Surging Today
Shares of ChargePoint Holdings (NYSE: CHPT) opened Wednesday on a strong note, trading 8% higher as of 10:30 a.m. ET after surging 12.6% higher earlier in the morning. The electric vehicle charging infrastructure company's earnings release is still some weeks away, but a rival is helping lift investors' hopes in the languishing stock ahead of earnings.
ChargePoint stock plunged to a 52-week low last month as investors became increasingly wary of the company's ongoing struggles amid a slowing global EV market. ChargePoint also announced a reorganization plan in January, including laying off 12% of its global workforce, that could save it some $33 million in annual operating expenses. With the company reporting a 12% year-over-year drop and a gross margin of negative 22% for its fiscal 2024 third-quarter revenue according to generally accepted accounting principles (GAAP), investors' expectations from ChargePoint have been muted so far.
This morning, though, rival Blink Charging (NASDAQ: BLNK) reported a surprisingly strong set of preliminary numbers for its 2023 fourth quarter and full year, indicating that things may not be as bad for the EV charging industry overall as they appear.
Source Fool.com
