What Happened?

Shares of electric vehicle charging company EVgo (NASDAQ: EVGO) fell 4.2% in the afternoon session after the stock's negative momentum continued as the company reported mixed third-quarter financial results that showed strong revenue growth but also a failure to meet sales expectations and a slightly wider-than-projected loss. 

EVgo announced total revenue of $92.3 million, a significant 37% increase from the same period in the previous year. However, this amount fell just short of analyst forecasts. The company also posted a loss of $0.09 per share, which was slightly deeper than what analysts had anticipated. Despite the misses, the report included some bright spots, such as a record $55.8 million in charging network revenue and a gross profit that nearly doubled from the prior year. Nevertheless, the market's reaction focused on the shortfalls in revenue and earnings, reflecting ongoing concerns about the company's path to profitability.

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What Is The Market Telling Us

EVgo’s shares are extremely volatile and have had 47 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 11 days ago when the stock gained 2.8% on the news that positive analyst ratings highlighted a favorable outlook for the company, supported by a backdrop of a rapidly expanding electric vehicle charging market. According to a consensus of six analysts, the company held a 'Buy' rating. A total of 83% of these analysts recommended either a 'Buy' or 'Strong Buy' for the stock. This sentiment came amid broader industry trends that showed a significant expansion of EV charging infrastructure. The continued build-out of charging facilities signaled strong growth in the sector and made driving electric vehicles more convenient for consumers.

EVgo is down 20.9% since the beginning of the year, and at $3.32 per share, it is trading 49.8% below its 52-week high of $6.61 from December 2024. Investors who bought $1,000 worth of EVgo’s shares 5 years ago would now be looking at an investment worth $337.87.

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