What Happened?
Shares of EV charging solutions provider ChargePoint Holdings (NYSE: CHPT) fell 1.9% in the morning session after the company issued a weaker-than-expected revenue forecast for the third quarter, which overshadowed its second-quarter results.
While ChargePoint's second-quarter revenue of $98.59 million slightly beat Wall Street estimates, it represented a 9.2% decrease from the prior year. The company also reported a quarterly GAAP loss of $2.85 per share, which was wider than analysts had anticipated. However, the key driver for the stock's decline was the forward-looking guidance. Management projected third-quarter revenue to be approximately $95 million, significantly below the consensus estimate of $107.3 million. This forecast prompted concerns among investors about a potential delay in the company's return to top-line growth and its path to profitability.
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What Is The Market Telling Us
ChargePoint’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 4.8% on the news that the major indices continued to retreat amid profit-taking and renewed concerns about tariffs. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
ChargePoint is down 53% since the beginning of the year, and at $10.52 per share, it is trading 68.9% below its 52-week high of $33.80 from September 2024. Investors who bought $1,000 worth of ChargePoint’s shares 5 years ago would now be looking at an investment worth $50.83.
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