What Happened?
Shares of electric vehicle charging company EVgo (NASDAQ: EVGO) jumped 2.8% in the afternoon session after 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.
After the initial pop the shares cooled down to $4.04, up 4.4% from previous close.
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What Is The Market Telling Us
EVgo’s shares are extremely volatile and have had 48 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 18 days ago when the stock gained 10% on the news that a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.
EVgo is down 3.7% since the beginning of the year, and at $4.04 per share, it is trading 49.4% below its 52-week high of $7.97 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 $411.26.
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