What happened
Shares of ChargePoint Holdings (CHPT 3.15%) have had a volatile year of gains and losses. Over just the past two months, the stock has soared 45% before then dropping 22%. Today, the shares of North America's leading EV charging network company are making another big move, dropping as much as 10% before settling with a decline of 7.9% as of 3:30 p.m. ET.
So what
The whipsaw movement has come as the company gave investors a promising progress report in its fiscal 2022 second-quarter financial update, raising its revenue guidance for the year by 15%. It will provide its fiscal third-quarter report next week, but the company's shares are being influenced by overriding macro sentiment in the meantime. The market is selling off many high-growth names in the EV sector today, and ChargePoint is no exception.
Image source: ChargePoint Holdings.
Now what
Many newly public companies in the EV sector that began trading after merging with special purpose acquisition companies (SPACs) have failed to produce what was promised. But ChargePoint has been a notable exception. In its last quarterly update, it said it expects to exceed those revenue estimates for its fiscal year 2022 that ends Jan. 31, 2022 by about 15%.
A week before it gives investors another update, the company announced that it has added former U.S. Secretary of Transportation and U.S. Secretary of Labor Elaine Chao to its board of directors. That's a nice endorsement, especially after President Biden has signed the new infrastructure bill that allocates $7.5 billion to help build out charging infrastructure in the U.S. ChargePoint should be among the beneficiaries of those investments.
ChargePoint shares are ending the week on a down note, along with many other companies in the EV sector. But investors deciding whether or not to invest in the charging network leader should focus more on what the company has to say in its quarterly update next week.
