What Happened?
Shares of electric vehicle charging company EVgo (NASDAQ: EVGO) jumped 32.6% in the afternoon session after the company reported strong first quarter 2025 results which beat analysts' sales and EBITDA expectations. In addition, full-year EBITDA guidance outpaced Wall Street's estimates. What really stood out was how much more energy people used at its chargers, as network throughput jumped 60%. That helped push revenue up 36%, led by a big rise in charging fees as more cars plugged into EVgo's growing network of stations. Zooming out, we think this quarter featured some important positives.
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What The Market Is Telling Us
EVgo’s shares are extremely volatile and have had 63 moves greater than 5% over the last year. But moves this big are rare even for EVgo and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock dropped 27.9% on the news that it announced a secondary offering of nearly 23 million of its common stock by EVgo Holdings, an affiliate of LS Power Equity Partners. The company was not selling any shares in this offering and was not expected to receive any proceeds from the sale.
EVgo is down 10.9% since the beginning of the year, and at $3.73 per share, it is trading 58.3% below its 52-week high of $8.94 from October 2024. Investors who bought $1,000 worth of EVgo’s shares at the IPO in November 2020 would now be looking at an investment worth $380.31.
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