Why Josh Brown Bought ChargePoint Stock Following Strong Q2 Results

Josh Brown, CEO of Ritholtz Wealth Management, bought ChargePoint Holdings Inc CHPT stock after the company announced better-than-expected financial results, he said Thursday on CNBC.

What Happened: ChargePoint reported an adjusted earnings loss of 13 cents per share, which was in line with expectations. The company reported quarterly revenue of $56.12 million, which beat the estimate of $49.06 million.

ChargePoint raised its full-year guidance and said it expects third-quarter revenue to be in a range of $60 million to $65 million versus the estimate of $54.6 million.

Related Link: 2 ChargePoint Analysts Break Down Q2 Earnings

Brown's Take: Brown has been following ChargePoint for a while, but this quarter's conference call was the first call he has listened to. The company beat on revenue and revenue is the only thing that matters.

"I really liked what I heard on the call and although the stock was up, I bought it anyway," Brown said.

Brown considers his current position a trade, but noted it may become a longer-term investment. If the stock falls below $20 per share, he's going to cut his losses.

This is a company that sees itself as being an enabler of the EV revolution in terms of charging stations. By 2030, about 30% of all vehicles sold are expected to be EVs. Even if that's overstated and it's closer to 15% or 20%, a lot of charging stations will be needed, Brown said.

ChargePoint is "one of the better pure plays" to capitalize on the anticipated increasing need for charging stations, he told CNBC.

CHPT Price Action: ChargePoint has traded as high as $36.86 and as low as $19.04 since it became public in March.

The stock was up 9.79% at $23.31 at time of publication.

Photo: Tony Webster from Flickr.