Please ensure Javascript is enabled for purposes of website accessibility

Why ChargePoint Stock Dropped Friday

By Howard Smith - Mar 12, 2021 at 10:37AM

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

The newly public electric vehicle charging network company just reported quarterly earnings.

What happened

Electric vehicle charging network company ChargePoint Holdings (CHPT 10.16%) reported its first quarterly earnings as a public company last night. Friday morning, its shares were down 9% as of 10:15 a.m. EST.

So what

The report is the first glimpse investors get of the company's future estimates after the initial presentation it made when it announced it was merging with a special purpose acquisition company (SPAC) to go public. The company's initial presentation estimated 2020 calendar year earnings to be $135 million, and the company came in above those estimates at $146 million. Investors, however, might be slightly disappointed that ChargePoint didn't raise 2021 revenue estimates.

students walking by ChargePoint charging station in parking lot

Image source: ChargePoint.

Now what

The company has said it expects a surge in growth as electric cars become more widespread. ChargePoint president and CEO Pasquale Romano said in a statement that his company's prospects are "bolstered by policy trends that continued to accelerate the shift to electric in North America and Europe." 

But investors today may not be happy that the company predicted the upcoming year's revenue to be between $195 million and $205 million. That is in line with its prior estimate of $198 million it provided before joining the public markets, and represents 37% year-over-year growth. 

That shouldn't be too surprising, since the initial estimates were only put out late last year. But with so much potential in the electric vehicle market, and the company being valued at more than $7 billion, perhaps investors wanted more. 

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

Chargepoint Holdings Inc. Stock Quote
Chargepoint Holdings Inc.
$13.01 (10.16%) $1.20

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

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.