If you’ve been waiting for a dip, this looks like a good time to make a move on ChargePoint. But if I had to pick one, CHPT stock, now off 50% from its highs, would be an intriguing option. That’s worth a lot when an industry is just getting going. But at least you own the best player in the field. This is hardly enough to guarantee that ChargePoint will be the long-term winner. And given the high interest in the sector, being the leading charging company should be worth a lot in terms of sentiment and valuation.Įven if EV stocks correct, CHPT stock should hold its position much more strongly than its weaker rivals. That said, it’s pretty clear that CHPT stock is a much better investment than Blink Charging at this point. Much of ChargePoint’s ultimate success will hinge on how quickly EVs take market share, and that’s largely out of ChargePoint’s control. If management can hit those, CHPT stock should be successful.īut it’s really hard to analyze how such a new industry will evolve over a time span that long. The company presents compelling projections for where the business will be in five years from now. It’s difficult to judge just how successful ChargePoint will be at this point. However, ChargePoint appears to be developing a strong first-mover advantage here, and that should be a pivotal edge going forward. That won’t entirely protect it from competition numerous other players besides Blink want a piece of the action as well. Particularly with the infusion of cash from its recent financing activities, ChargePoint should be able to build on its already considerable market share lead in the charging industry.
You can debate the technical capabilities of the two companies all you want, but you can’t argue that ChargePoint has been far more successful in monetizing its charging assets.Īnd, despite the pandemic, ChargePoint has done a good job of keeping its growth trajectory rolling. Blink, by contrast, is bringing in less than $10 million annually in revenues. ChargePoint is generating around $150 million in annual revenues. Just looking at the top-line actual revenues, ChargePoint’s advantage becomes all the more apparent. In addition, ChargePoint’s subscription-software based approach to monetization seems to be a better fit with its customers. However, it seems that Blink’s technology may not be quite on the same level as ChargePoint’s.
According to the reported network capacity numbers, Blink isn’t impossibly far behind ChargePoint. ChargePoint: A Far Better AlternativeĬhargePoint already has tens of thousands of charging locations, which is a massive buildout already given that the industry is still in its infancy. It’s unclear how all of this will play out yet, however it’s clearly enough to raise concerns for Blink’s shareholders. Law office Hagens Berman, for example, is suing Blink, suggesting that the company misled shareholders about the capabilities of Blink’s EV charging stations. In fact, law firms are suing Blink to pursue these claims. This should trade right back to $10 where it is still overpriced. Expect a massively diluted deal soon so management can continue to deceive public. No $$ for R&D, management accused of securities fraud, no real revenues. Months after those two short sellers hit Blink, Citron Research also slammed it with this explosive tweet: And the short sellers also pointed out some questionable tactics in other areas, such as stock promotion. On the operations side, short sellers said the company had overstated the size and capabilities of its charging network, its partnerships, and other things. 8 Hot Stocks to Buy for Your Well-Diversified Portfolio.These were both operational and in terms of management practices. In separate reports, two short-selling firms accused Blink of a variety of issues. Short sellers went after Blink last year. Blink: A Troubled Company Facing Lawsuits As such, there’s a strong case for owning CHPT stock compared to its chief rival going forward. In the case of ChargePoint and Blink, for example, ChargePoint is only worth four times as much as Blink by market capitalization despite generating nearly 20x as much in revenues.Īdditionally, ChargePoint is a reputable company with quality backers, while Blink is dogged by various concerns and lawsuits. Traders have bid up the EV charging names recently, with ChargePoint and Blink Charging (NASDAQ: BLNK) being huge winners.īut not all EV stocks, or charging station names, are created equal. Source: David Tonelson / Īfter all, without a reliable electric station network, EVs can’t achieve mass adoption.
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