Shares of electric vehicle charging company Blink Charging (NASDAQ:BLNK) jumped as much as 23.8% in trading Friday, continuing a sharp move higher this week. At 3:20 p.m. EDT, shares were still up 21.6% and it looks like they'll close near a 52-week high hit earlier in the day.
I would chalk up most of the move today to continued momentum for electric vehicle stocks, and Blink Charging in particular. But in an interview with IPO Edge, CEO Michael Farkas also highlighted his long-term strategy for the company and explained why he sees explosive growth.
Farkas said that as travel returns to more normal levels he's seeing greater demand for EV chargers, primarily in commercial and multi-unit housing locations. He also said the Biden administration could provide some tailwinds for the industry if it introduces incentives for EV charging.
What I took as most notable from the discussion was that Blink Charging sees competition as a good thing. As smaller competitors pop up, it allows Blink Charging to acquire them for relatively low prices, especially if it has a highly valued stock it can use as currency.
There's a lot of speculation around Blink Charging's stock, but that's to be expected from a relatively small company with huge growth stock potential. This week has just been particularly strong, with multiple days of the stock jumping double-digit percentage points. Investors should keep in mind that shares can pull back just as quickly, particularly as speculators exit the stock. So next week may not be as strong as this week was.