Stocks of electric-vehicle (EV) charging station companies have been racing higher this month. That continues today, with shares of Blink Charging (NASDAQ:BLNK) soaring another 20% as of 11 a.m. EST.
In the last week, Blink has announced agreements with several healthcare system operators to grow its product deployment. But the move in the stock comes along with those of other names in the space.
Switchback Energy (NYSE:SBE) and TPG Pace Beneficial Finance (NYSE:TPGY) -- two special-purpose acquisition companies (SPACs) that have plans to bring EV charging station companies public -- have also been riding the wave this month.
Switchback and TPG are merging with ChargePoint and EVBox, respectively, to bring those charging station manufacturers public soon. ChargePoint is the largest operator of Level 2 charging networks -- the type that utilize 240-volt power -- in North America. EVBox has Europe's largest charging station network.
Blink's agreements to grow its network are good news for the company. In just the last week, the company announced deals that will add more than 600 new stations for its customers. But Blink has less than a 10% market share in North America, trailing ChargePoint's more than 70% penetration.
Some investors might just be looking to own a bucket of charging station manufacturers and operators, since those businesses will benefit from the quickly growing EV network. But valuations will eventually be determined by business fundamentals, and investors should research those details rather than just buying blindly.