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Is ChargePoint Worth Investing In Now?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

ChargePoint Holdings Inc.’s stock is experiencing positive momentum following a series of influential news. Notably, ChargePoint’s latest financial report, surpassing analysts’ expectations, and the announcement of a strategic partnership with a major automotive manufacturer to expand EV infrastructure are the primary catalysts. Reflecting this optimism, on Tuesday, ChargePoint Holdings Inc.’s stocks have been trading up by 7.66 percent.

  • ChargePoint has rolled out an AI-powered driver support tool to fast-track the diagnosis and repair of charging stations, aiming to boost network reliability (Aug 29, 2024).
  • A partnership with Daimler Buses will enable seamless integration of ChargePoint’s telematics and charge management systems with Mercedes-Benz and Setra brands (Aug 27, 2024).
  • David Vice has been appointed as ChargePoint’s Chief Revenue Officer, tasked with driving growth through the global Sales and Marketing functions (Sep 16, 2024).
  • ChargePoint reported mixed Q2 2025 results with $109M in revenue and notable subscription revenue growth yet projected lower Q3 revenue (Sep 04, 2024).

Candlestick Chart

Live Update at 16:40:54 EST: On Tuesday, September 17, 2024 ChargePoint Holdings Inc. stock [NYSE: CHPT] is trending up by 7.66%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of ChargePoint Holdings Inc.’s Recent Earnings Report and Key Financial Metrics

ChargePoint (CHPT) has seen an interesting fluctuation in its stock price recently, probably leaving investors wondering what’s next. Scrutinizing their latest fiscal Q2 2025 financial results reveals a complex picture. Revenue clocked in at $109M, showing a year-over-year growth in subscription revenue. However, this was balanced by an overall revenue drop compared to the previous year. In an attempt to straighten things out and cut costs, the company projected lower revenue for Q3 2025.

Key Ratios and Financial Metrics

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ChargePoint’s profitability ratios tell a somber story: an EBIT margin of -83.4%, EBITDA margin of -76.4%, and a net income showing a troubling -$68.87M. These figures suggest the company is facing challenges in converting sales into profits. However, their gross margin of 10.8% shows some light, implying that the primary business of selling EV charging services is financially viable to some degree.

Earnings and Cash Flow

In their income statement, CHPT reported an operating revenue of $108.54M but was burdened by total expenses of $171.28M, which led to an operating loss of -$62.75M. Despite these stark numbers, it’s evident that the company is putting a lot into research and development, shelling out about $36.5M. Their free cash flow stood at -$55.03M, reflecting substantial expenditures in growth-driven activities like R&D and capital investments. This could be part of their strategic choice to carve out a larger market share while sacrificing short-term profits.

More Breaking News

Market Movements

Recent movements in ChargePoint’s stock have been volatile. On Sep 17, 2024, the opening price was $1.36, but saw an uptick to $1.51 by the closing bell, showing investor responses to the recent news. The day before, the stock was flat at $1.37, likely due to less impactful news.

How Will The Latest Partnerships Impact Their Market Position?

Daimler Collaboration Boosting Credibility

ChargePoint’s partnership with Daimler Buses, achieved on Aug 27, 2024, stands out as a significant feather in their cap. By integrating their charge management systems with Mercedes-Benz and Setra brand buses, ChargePoint is hoping to tap into the lucrative and expanding commercial EV market. This collaboration aims to provide rapid and cost-effective onboarding services for fleet managers, giving them a comprehensive platform to monitor assets, receive real-time insights, and access advanced reporting.

On the surface, this seems like a positive step, further cementing their foothold in the EV infrastructure market. The actual financial benefit from this partnership is still to be seen, but the move certainly bodes well for investor sentiment, possibly leading to a lift in stock prices given positive execution.

The AI-Powered Tool: A Game Changer?

Aiming to stitch potential chinks in their operational efficiency, ChargePoint introduced an AI-powered driver support tool on Aug 29, 2024. This feature isn’t just a fancy technological upgrade; it’s projected to hasten the diagnostic and repair processes of their charging stations. This should ideally lead to improved network reliability and uptime. It’s a strategic move that could potentially reduce the operational costs tied with downtime and maintenance, which are significant pain points in the EV charging space.

Investors and market watchers typically view such initiatives optimistically, especially when they point towards enhanced operational efficiency. It could nudge the stock upward if the technology implementation proves successful in the long run.

So, Is ChargePoint Setting Up for a Rebound?

Executive Vision Under New Leadership

On Sep 16, 2024, the appointment of David Vice as Chief Revenue Officer was announced. Vice, with over three decades of experience including significant stints at NTT Data Services and Omnitracs, LLC, is tasked with steering growth through global sales and marketing efforts. This change in the executive suite brings a breath of fresh air and signals a renewed focus on achieving robust revenue targets and market expansion.

Leadership changes often inject a degree of uncertainty, but they can also spark new strategic directions and improvements. If Vice manages to leverage his experience and turn the sales ship around, we could see a more sustained recovery in CHPT’s stock price.

Analysis of Recent Pricing Trends

Looking at the recent multi-day price chart, the stock saw fluctuating movements. On Sep 04, 2024, the closing price was $1.39, and just a few days later on Sep 16, 2024, it nudged up to $1.51. The intraday 5-minute candles show minor swings, typical of a stock weathering mixed news sentiment.

These subtle jumps might suggest investor hesitation – perhaps weighing the company’s potential against recent financial struggles. Levels like $1.47 have been touched multiple times in a single day, signaling a point of resistance or support.

Impact of Mixed Financial Results

The mixed Q2 results, as reported on Sep 04, 2024, showcase a company at a crossroads. Revenue growth in some segments is overshadowed by broader revenue declines and increasing expenses. The $109M revenue figure combined with substantial investments in new technology and strategic partnerships indicates a future-focused, albeit cash-burning, phase for ChargePoint.

This mixed bag could translate into temporary price stagnation or slight upward movements, predicated on how the market interprets future growth prospects against current fiscal realities.

Strategic Implications of News Articles

The lowered revenue projections for Q3 signal caution. Investors might adopt a wait-and-see approach as they gauge the success of ChargePoint’s ongoing initiatives and strategic moves like the Daimler partnership and AI tool implementation.

In conclusion, while ChargePoint’s stock has been on a roller coaster, current strategic partnerships and technological advancements suggest a potential rebound. However, investors might remain cautious due to mixed financials and pending evidence of execution success. The incoming Chief Revenue Officer David Vice’s strategy could be pivotal in steering the company towards a promising path.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”