Please ensure Javascript is enabled for purposes of website accessibility

Why Blink Charging Stock Just Popped

By Rich Smith - Feb 24, 2021 at 2:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Blink stock probably should have "gone up" yesterday so...why the delay?

What happened

Did you blink? Did you miss it? On Tuesday, electric car charging company Blink Charging (BLNK 1.02%) announced some big news that -- on any ordinary day -- probably would have sent its stock price up lightning-quick. Instead, Blink stock got caught up in the tech stock rout and dropped more than 8%.

Today, however, with the panic passed, Blink shares are finally reacting to yesterday's big news and are up 7.7% as of 1:45 p.m. EST.

Row of Blink charging stations against a wooded background.

Image source: Blink Charging.

So what

Specifically, the news that the state of Vermont has awarded Blink a "Statewide Charging Grant Across Vermont," funding the installation of "11 new DC fast chargers across the state in the next two years."

Now 11 charging stations -- no matter how fast they are -- probably doesn't sound like a very big deal. But according to Blink CEO Michael Farkas, because "the stations will be strategically placed across the state ... nearly every Vermont citizen will be within 30 miles of an EV fast-charging station" once the stations are in place.  

Now what

And that does sound like kind of a big deal. Granted, the question remains whether people will use the chargers, and specifically, use them often enough to generate any appreciable increase in Blink's annual revenue stream, which at last report still sat at a minuscule $4.5 million per year.

I suspect that few Vermonters will in fact drive 30 miles, or 30 minutes out of their way, just to "fill up the tank" on their electric cars. Owners of electric cars would more likely calculate the hour it would take to make the trip and decide to use that time recharging at home instead. That being said, spacing out fast chargers along highways could very well attract visits from folks who are already out driving on long trips.

Investors buying Blink stock today had just better hope that's enough to move the needle on revenues.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Blink Charging Co. Stock Quote
Blink Charging Co.
BLNK
$16.97 (1.02%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.