EV Growth Stock ChargePoint Holdings Continues To Impress Investors: Here's Why

As the electric vehicle sector continues to grow, investors are becoming more and more interested in a global online network of EV charging stations.

ChargePoint Holdings, Inc CHPT continues to have tremendous growth in the stock market, and has quickly become “the most-watched stock” according to Zacks.

What To Know About ChargePoint: The company was originally founded in 2007 as Coulomb Technologies by Richard Lowenthal, Dave Baxter, Harjinder Bhade and Praveen Mandal when they anticipated an EV revolution.

Many people are hesitant to purchase an electric car due to a fear that they could run out of power with no available charging stop in sight.

ChargePoint is working to create a global network of charging stations that can be easily accessed on a road trip.

In 2011, Pasquale Romano took over as CEO and since then the company has grown exponentially. 

On Jan. 9 2019, General Motors Company GM announced that it would be teaming up with ChargePoint to make all of its EVs compatible to use ChargePoint’s service. This announcement significantly helped ChargePoint as it was now recognized by one of America’s largest car manufacturers, growing revenue and increasing public awareness. 

The ChargePoint Shareholder Perspective: As the company grows, shareholders are more confident than ever in ChargePoint.

Benzinga reached out to a ChargePoint shareholder to get their viewpoint on the future of the company.

“CHPT [ChargePoint] is a big player to provide electrification with a great potential for dominate market share”, one shareholder shared. 

Key Financial Information To Know: The company went public in March 2021 after merging with the former SPAC Switchback Energy Acquisition Corporation.

The stock went public at around a price of $30. Since then the stock has fallen over 50% in value, but that could be attributed to a bear market and negative financials as the company went public. 

For the fiscal year ending on Jan. 31 2021, ChargePoint reported a net income of negative $197.024 Million. The company then reported a net income of negative $132.241 million for the following fiscal year, according to Benzinga Pro.

While the company hasn't reported positive yearly net income yet, that day will likely soon arrive as the company continues to grow and mature. 

On the other hand, the company reported a promising 62% growth in gross profit from 2020 to 2021. As a new company, ChargePoint’s operating costs were 6 times the reported gross profit, which is why it keeps finding itself with a negative net income. 

In the company’s outlook for the fiscal year ending Jan. 31, 2023, ChargePoint said it projects that revenue will have increased by 96% to anywhere between $450 and $500 million. 

Benzinga’s Take: As the EV sector continues to grow, ChargePoint is a company to watch. 

The company has stated that its products are compatible with EV leader Tesla, Inc TSLA.

Photo: Courtesy of American Tobacco Campus on flickr.