What Happened?
Shares of EV charging solutions provider ChargePoint Holdings (NYSE: CHPT) fell 22% in the afternoon session after the company reported weak first quarter 2025 results: its revenue, EPS, and EBITDA missed.
A 20% decline in Networked charging systems sales was responsible for most of the top line weakness observed in the quarter. Its revenue guidance for next quarter also fell short of Wall Street's estimates. Overall, this quarter could have been better.
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What The Market Is Telling Us
ChargePoint’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. But moves this big are rare even for ChargePoint and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 22.1% on the news that the company reported strong third-quarter results that exceeded analysts' revenue and EBITDA estimates. While sales declined year on year in the Networked charging systems business, the result came in well ahead of consensus estimates, indicating expectations were modest heading into earnings.
However, the top line also benefited from strong double-digit growth in the subscription segment, which is more promising.
On the other hand, its full-year operating income guidance was lowered, showing that the growth is less profitable than expected. The market seemed to be focused more on the top-line successes, and the stock was up as a result.
ChargePoint is down 37.8% since the beginning of the year, and at $0.70 per share, it is trading 70.6% below its 52-week high of $2.37 from July 2024. Investors who bought $1,000 worth of ChargePoint’s shares 5 years ago would now be looking at an investment worth $70.88.
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