What Happened?

Shares of EV charging solutions provider ChargePoint Holdings (NYSE: CHPT) jumped 26.8% in the afternoon session after the company reported third-quarter results that beat Wall Street's revenue expectations and showed improving profitability. 

Revenue grew 6.1% year-on-year to $105.7 million, exceeding analyst estimates by over 10%. The company's gross margin also showed significant improvement, expanding to 30.7% from 23.8% in the same quarter last year. While its GAAP loss per share of $2.23 slightly missed analyst forecasts, it marked a substantial improvement from a loss of $3.56 per share in the prior year. Looking ahead, ChargePoint provided an optimistic revenue forecast for the next quarter, with its guidance of $105 million at the midpoint also coming in above Wall Street's projections.

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What Is The Market Telling Us

ChargePoint’s shares are extremely volatile and have had 58 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 previous big move we wrote about was 3 days ago when the stock gained 4.2% on the news that investors looked forward to the company's upcoming earnings report, which was scheduled for later in the week. 

The move also came amid broader positive news for the electric vehicle charging sector. Data showed that the deployment of CCS1 chargers, a common standard used by many non-Tesla vehicles, was outpacing the NACS standard in the U.S. during the year. The number of publicly available CCS1 connectors grew by nearly 9,000, or 37%, since the start of the year, surpassing a total of 30,000. This growth highlighted continued investment in the charging infrastructure that companies like ChargePoint operate within, suggesting a healthy market environment before the company released its financial results.

ChargePoint is down 52.8% since the beginning of the year, and at $10.57 per share, it is trading 62.3% below its 52-week high of $28 from December 2024. Investors who bought $1,000 worth of ChargePoint’s shares 5 years ago would now be looking at an investment worth $14.52.

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