Why ChargePoint Stock Added to Its Recent Surge With a Gain Again This Week
Key Points
Investors are sensing an inflection point after ChargePoint's Q2 results.
The stock is still far lower than it was a year ago.
ChargePoint Holdings (NYSE:CHPT) stock has been on a massive run recently. Shares have soared almost 80% in the last month, including a gain of 6% this week as of Friday afternoon, according to data provided by S&P Global Market Intelligence.
That doesn't mean all shareholders are necessarily happy, though. ChargePoint stock has still lost almost 20% over the past year. But its most recent quarterly report may have signaled an inflection point, helping to explain its recent gains.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A solid revenue beat and a narrower net loss weren't the only reasons for optimism. Those are incremental steps, certainly. But ChargePoint has taken incremental steps to grow revenue, only to regress in the past. Some of that has to do with the slowdown in EV sales growth. Still, it is likely also related to the strength of Tesla's Supercharger network and reported maintenance issues at non-Supercharger charging stations.
Image source: Getty Images.
More important signals of optimism were record gross margins and ChargePoint CEO Rick Wilmer's strong Q3 guidance, along with his remarks in a CNBC interview. "The growth is starting to accelerate. It'll be driven substantially by the new products and technology we're putting into the market," stated Wilmer.
Wilmer also correctly predicted that the results would be a catalyst to create momentum in ChargePoint stock. Whether that continues will depend on how well its promised new products and technology perform and are accepted by its charging station customers.
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.